Dylan Products has a budget of $1,200,000 in 2021 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $90,000 in variable prevention costs. The new method will require $40,000 in training costs and $150,000 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 210,000 units. (Click on the icon for more information.) How much do external failure costs change if all the changes are as the new prevention procedures anticipated? Assume all units produced are sold and there are no ending inventories. O A. $100,800 decrease O B. $126,000 decrease O C. $158,900 decrease D. $151,200 decrease O E. $156,400 decrease More Info Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $20 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 one-half. Internal failure units are destroyed. External failure costs average $48 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories. Print Done