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Dalton Industries is contemplating some operational changes to reduce its overall costs of quality. What is the anticipated annual effect on operating income from adopting

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Dalton Industries is contemplating some operational changes to reduce its overall costs of quality. What is the anticipated annual effect on operating income from adopting this quality initiative? To answer this question, 0 (Click the icon to view additional information.) rst calculate the total costs of quality before making the operational changes and then calculate the total costs of quality after making the operational changes. Compute the difference between the "before" and the "after". a (Click the icon to View the additional information and data.) First, select the labels and then calculate the total costs of quality before making the operational changes. (If a box is not used in the table leave the box empty; do not select a label or enter a zero) Dalton Cost of Quality Analysis (Before changes) Costs Prevention Costs: Appralsal Costs: Internal Failure Costs: Extomal Failure Costs: Total costs of quality Now calculate the total costs of quality after making the operational changes. Select the labels and then enter the amounts. (Enter a minus sign or parentheses for a benefit or cost saving. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Costs Dalton Cost of Quality Analysis (After changes) (Benefits) Prevention Costs: Appraisal Costs: Internal Failure Costs: External Failure Costs: Total costs of quality Compute the difference between the 'before' and the 'after. and select the appropriate label to reflect whether Dalton Industries will experience a net benefit or net cost from making the operational changes. Choose from any list or enter any number in the input fields and then continue to the next question. ?i More Info X The following data reflects current operations (prior to making the operational changes): Current production and sales level (in units) 106,000 The company believes that if it upgrades one component of its product at an Sales price per unit 160 additional cost of $3.00 per unit, it will be able to decrease its current warranty repair rate by 90%. The company also believes it will be able to sell 1,900 more Current variable cost of making and selling one unit 82 units over the next year due to an enhanced reputation for quality. Dalton currently 26 has enough excess capacity to make the 1,900 extra units needed to meet the Variable warranty repair costs per unit repaired increased demand. Current warranty repair rate of units produced 20% Print Done Print Done

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