a. The company, both in its fishing and industrialization areas, is controlled by SENASA, the National Animal Health Service of the Ministry of Agriculture and Livestock, an entity that requires this type of organization to have environmentally friendly production practices that are safe for consumers and adequate conditions for employees.

b. The company needs to calibrate its measuring and control equipment every three months due to the environment in which it is located, at a quarterly cost of 600,000 colones, starting in March. It is accounted for on a monthly basis

c. Annually, employees receive a two-day refresher course on production or control techniques. They hire an expert in the subject, at a daily cost of $1,000. The training took place in October.

d. In the cleaning and packaging area, there is an annual personnel turnover rate of more than 50%, mainly in the process related to tail cutting.

e. SENASA requires the company to have a regent to control the quality of the lobster, with a salary of $500 per month, a weekly visit to the fishing zone and the production plant, and a weekly visit to the production plant.

f. The monthly salaries of the employees in the processing plant correspond to an approximate amount of 6,525,000 (1Chief ( 850,000), Laboratory Manager ( 450,000) and 15 operators/operators, ( 320,000 each employee), a receptionist and person in charge of customer service, attention to doubts and complaints ( 425,000). The receptionist spends one-fourth of her working time dealing with complaints.

g. The operators work Monday through Friday from 6am to 3:30pm (with an hour for lunch and coffee) and on Saturdays from 6am to 11:30am. They dedicate two hours daily to verification and control tasks.

h. In the last three months (August, September and October), an average of 25 kilograms per month have been discarded, due to a drop in temperature to -10 C. The total production cost per kilogram of lobster is 12,000.

i. The client organizations, lobster tails being among the highest value products in the seafood category, are very demanding. The receptionist frequently receives complaints about the color of lobster tails. They have had returns amounting to 1,500,000, 2,020,000 and 950,000, during August, September and October respectively.

The General Manager of the company needs to comply with all SENASA requirements and implement methodologies that will enable it to meet the aforementioned requirements, manage its resources properly, aiming to be a profitable company, as well as continuously improve.

The goal for this year is to prepare its processes, production and control methods, and the organization itself, to be able to export to the Swedish market next year, taking into account that it is a highly demanding and socially responsible market. It is necessary to know the quality costs incurred during the months of August, September and October, in order to direct their efforts for continuous improvement. Take into account that the value of the dollar today is 633.00 and that employees work 48 hours per week and 4.33 weeks per month.

Prevention costs

Answer 1 Choose... Indirect costs

Answer 2 Choose... Internal failure costs

Answer 3 Choose... External failure costs

Answer 4 Choose... Evaluation costs

Answer 5 Choose...

OPTIONS:

0

900,000.00 TO 1,000,000.00

2,200,000.00 TO 2,300,000.00

2,070,000.00 TO 2,090,000.00

4,700,000.00 TO 4,800,800.00