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Cannon manutactures hyh qualty speakers Suppgso Cannon is considenng spending the followng it also expects this program to avoid lost profits foom the following. artounts

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Cannon manutactures hyh qualty speakers Suppgso Cannon is considenng spending the followng it also expects this program to avoid lost profits foom the following. artounts on a new cualty program \{Clck the icon to vew the intormation) III (Click the icon to view the information) Cannon expects thus qualiy program to save costs as bollows. 1. Classily each of these costs into one of the four calegones af qualify costs cpreventian, (Click the kon to view the information) appeasal, internal falure, exdernal falure) 2. Should Cannon implament the qualty program? Give your reasons Additional 20 minutes of testing for each speaker . ................ $606,000 Negotiating with and training suppliers to obtain higher-quality materials and on-time delivery. .5570,000 Redesigning the speakers to make them easier to manufacture ......... \$ 1,404,000 Reduced warranty repair costs $200,000 Avoid inspection of raw materials. $402,000 Rework avoided because of fewer defective units ........ \$ 658,000 Lost sales due to disappointed customers \$ 858,000 Lost production time due to rework ............ \$ 305,000

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