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Use the Information Below to Answer the Following Question(s)

question 148

Multiple Choice

Use the information below to answer the following question(s) .Dylan Products has a budget of $1,200,000 in 2018 for prevention costs.If it decides to automate a portion of its prevention activities, it will save $90,000 in variable costs.The new method will require $40,000 in training costs and $150,000 in annual equipment costs.Management is willing to adjust the budget for an amount up to the cost of the new equipment.The budgeted production level is 210,000 units.Appraisal costs for the year are budgeted at $500,000.The new prevention procedures will save appraisal costs of $50,000.Internal failure costs average $20 per failed unit of finished goods.The internal failure rate is expected to be 4% of all completed items.The proposed changes will cut the internal failure rate by one-half.Internal failure units are destroyed.External failure costs average $48 per failed unit.The company's average external failures average 2.5% of units sold.The new proposal will reduce this rate to 1%.Assume all units produced are sold and there are no ending inventories.
-How much do external failure costs change if all the changes are as the new prevention procedures anticipated? Assume all units produced are sold and there are no ending inventories.

Definitions:

Attachment

An emotional bond that forms between individuals, often focusing on the connection between infants and their primary caregivers.

Cognitive Perspective

An approach in psychology that focuses on the way people perceive, process, and retrieve information, emphasizing mental processes in perception, memory, language, problem-solving, and thinking.

Specific Attachments

Refers to the close emotional bonds that develop between infants and their primary caregivers, leading to a sense of security and comfort.

Age Range

The span of years between the youngest and oldest members of a population or group being studied or referenced.