DE25-21 Porsche manufactures expensive, high-quality sports cars including the 911 and Boxster. Suppose Porsche is considering spending the following amounts on a new quality program for the 911: Additional 20 minutes of testing for each car. Negotiating with and training suppliers to obtain higher quality materials and on-time delivery Redesigning the 911 model to make it easier to manufacture. Porsche expects this quality program to save costs, as follows: Reduced warranty repair costs Avoid inspection of raw materials. Rework avoided because of fewer defective units.. $ 500,000 200,000 1,200,000 $150,000 400,000 550,000 It also expects this program to avoid lost profits from Lost sales due to disappointed customers. Lost production time due to rework... $800,000 250,000 1. Classify each of these costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure). 2. Should Porsche implement the quality program? Give your reasons.