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

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Definitions:

Valid Loop Conditions

Conditions that must be true for a loop to execute or continue executing, ensuring the loop's termination at the correct time.

Condition False

A boolean state indicating that a particular condition or expression evaluates to false.

Posttest Loop

A programming loop that evaluates its condition after the loop's body has been executed, ensuring the loop runs at least once.

Entranced-Controlled Loop

Likely an incorrect term possibly referring to "entry-controlled loop," which determines whether to execute its loop body based on a condition checked at the beginning of each iteration. NO.