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Cysco Corp has a budget of $1.200,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will

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Cysco Corp has a budget of $1.200,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $102,000 in variable costs. The new method will require $50,400 in training costs and $141,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 201,000 units. Appraisal costs for the year are budgeted at $507,000. The new prevention procedures un it finished goods The internal failure rate is expected to be 6% o all completed items. The pr posed changes will cut the internal a re rate by one-half. Internal failure units are destroyed External failure costs average S56 per failed unit. The company's average external failures average 3 3% o units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories will save appraisal costs of $50,400. Internal failure costs average $32 per failed Management has offered to allow the prevention changes if all changes take place as anticipated and the amounts netted are less than the cost of the equipment. What is the net impact of al the changes created by the revert e changes? Assume that internal product failures are reduced by 33% with the new procedures. O A. $(347.242) O B. $(343,488) O C. $(253,500) O D. $270,144

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