Charalambous Pumps, established by Charalambos "Bambos" Charalambous in 1936, is analyzing expanding its Total Quality Management program. It already has a TQM program in place. However, one of its customers, Odysseus Boats, is asking all suppliers to become ISO 9000-qualified, a process that certifies that the firm meets various standards. Once suppliers are ISO 9000-qualified, Odysseus Boats can reduce its inspection costs. Not all of the suppliers will be certified, and those that are certified will receive more business from Odysseus Boats. Odysseus Boats purchases bilge pumps from Charalambous Pumps. After earning ISO 9000 certification, Charalambous estimates that it will have to incur the following annual incremental costs if it wants to maintain its certification: To manufacture the current quality of the bilge pumps (before ISO 9000 certification), the budgeted selling price and standard cost data per bilge pump follow. Unless Charalambous Pumps receives ISO 9000 certification, it will lose Odysseus Boats' business of 70,000 units per year. Management estimates that the higher quality of the bilge pump that meets quality criteria will allow Charalambous Pumps to add 20,000 pumps to its existing sales from new and continuing customers. Charalambous Pumps is currently selling 380,000 bilge pumps per year, including the Odysseus sales. The 380,000 current sales amount to 69 percent of plant capacity. The additional 20,000 units sold can be manufactured without exceeding plant capacity. The higher-quality process after ISO 9000 certification is received would apply to all the bilge pumps produced. Required: Should Charalambous Pumps seek ISO 9000 certification? Support your recommendation with an analysis of the costs and benefits of certification