11. Premier Corp expects to spend $800,100 in 2020 in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $60,800 in fixed appraisal costs and variable costs of $0.50 per materials units received. The new method involves $141,000 in production process inspection and an additional $150,100 in testing equipment. Internal failure costs average $190 per failed unit of finished goods. During 2019,5% of all completed items had to be reworked. External failure costs average $500 per failed unit. The company's average external failures are 10% of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just-in-time inventory ordering method is used. Required: 1. What is the net effect on appraisal costs for 2020 , assuming the new receiving method is implemented and that 800,100 material units are received? 2. What would be the change in the internal failure budget, if 60,000 units are used and assuming internal failures are increased to 8% ? 3. What would be the change in the external failure budget, if 50,000 units are used and assuming external failures are reduced by 3%