Question
Bradford Inc. manufactures and sells digital cameras. Bradford's management team has begun an intensive program whereby more time and effort are to be focused on
Bradford Inc. manufactures and sells digital cameras. Bradford's management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
Product quality audits $90,000
Quality training 60,000
Rework costs 40,000
Warranty claims 70,000
Inspection of incoming materials 30,000
Scrap costs 24,000
Statistical process control 30,000
Refer to the Bradford Inc. information above. What are Bradford's total internal failure costs?
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