Cysco Corp has a budget of $ 1,205,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention? activities, it will save $ 105,000 in variable costs. The new method will require $ 50,000 in training costs and $ 148,000 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 206,000 units. Appraisal costs for the year are budgeted at $ 500,000. The new prevention procedures will save appraisal costs of $ 50,900. Internal failure costs average $ 34 per failed unit of finished goods. The internal failure rate is expected to be 4?% of all completed items. The proposed changes will cut the internal failure rate by oneminushalf. Internal failure units are destroyed. External failure costs average $ 52 per failed unit. The? company's average external failures average 3.5?% of units sold. The new proposal will reduce this rate to 1?%. Assume all units produced are sold and there are no ending inventories. 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 all the changes created by the preventive? changes? Assume that internal product failures are reduced by 35?% with the new procedures.

A) $(356,600)

B) $(323,756)

C) $(250,000)

D) $171,392

The correct answer is "B" - please show step-by-step how to solve