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Assume Spring Fresh Beverages has discovered a problem involving the mix of flavor to their seltzer water that costs the company $3,000 in waste and $2,500 in lost business per period.There are two alternative solutions.The first is to lease a new mix regulator at a cost of $4,000 per period.The new regulator would save Spring Fresh Beverages $2,000 in waste and $2,000 in lost business each period.The second alternative is to hire an additional employee to manually monitor the existing regulator at a cost of $2,500 per period.This would save Spring Fresh Beverages $1,500 in waste and $800 in lost business per period.
Required:
Which alternative should Spring Fresh Beverages choose?
(Spring Fresh Beverages;Quality versus costs. )
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