Answer the Following Questions Using the Information Below

question 126

Multiple Choice

Answer the following questions using the information below:
Cysco Corp has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $100,000 in variable costs. The new method will require $50,000 in training costs and $140,000 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 200,000 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 $30 per failed unit of finished goods. The internal failure rate is expected to be 5% 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 $50 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 will appraisal costs change assuming that the new prevention methods reduce material failures by 30% in the appraisal phase?

• A) $150,000 decrease
• B) $229,000 decrease
• C) $50,000 increase
• D) $50,000 decrease

Recognize the utility of standard scores in comparing data.

Comprehend the basic concepts and tools of descriptive and inferential statistics.

Understand the concept of distribution shapes and their implications.

Grasp the significance of scales of measurement in selecting assessment instruments and interpreting data.

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Definitions:

Indigenous Peoples

Refers to groups of people native to a specific region or country, often maintaining traditional customs and ways of life distinct from those of dominant cultures.

Self-Determination

The process by which a person controls their own life, or the power of a country to control its own government.

Cultural Heritages

The legacy of physical artifacts and intangible attributes of a group or society inherited from past generations, including customs, practices, places, objects, artistic expressions, and values.

Obesity

A medical condition characterized by excessive body fat accumulation, which poses a risk to health.