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CC Corp has the following budget amounts for the current year: $1,200,000 for prevention costs and $960,000 for appraisal costs. Internal failure equnis $100 per

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CC Corp has the following budget amounts for the current year: $1,200,000 for prevention costs and $960,000 for appraisal costs. Internal failure equnis $100 per fsted hem and external failure has a total budget of $720,000 The Product Testing department has proposed a new method of testing products. It management decides to implement the new method, $2.40 per unit of appraisal costs will be saved, up to a level of 150,000 tests. No additional savings are expected past the 150,000 level. The new method involves $144,000 in training costs and $78,000 in yeary testing supplies the new testing method is implemented what is the revised budget for appraisal costs, assuming 600,000 units are tested during the current year? Multiple Choice $552.000 $400.000 $152.000 $792000

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