E Quiz: Quiz 1 New Q X Data table Rock - On manufactures high-quality audio speakers. Suppose Rock - On is considering spending the following amounts on a new qu (Click the icon to view the spending budget on the new quality program.) Additional 20 minutes of testing for each speaker .......... . . . . . . .. . $ 660,000 Rock - On expects this quality program to save costs as follows: Negotiating with, and training suppliers to, obtain higher-quality materials and on-time delivery . . ... . . . . ... 300,000 (Click the icon to view the cost savings.) It also expects this program to avoid lost profits from the following: Redesigning the speakers to make them easier to manufacture . . . . . . . . . . . . 1,480,000 (Click the icon to view the lost profits avoided.) Requirements - X Data table FLAIL WILLI LITE III SL LINICE LUSES. Reduce warranty repair costs. . . .. . $ 340,000 Additional 20 minutes of testing for each speaker. . . . . . . . . . . Is . Eliminate inspection of raw materials . . . . . 520,000 Negotiating with, and training suppliers to, obtain higher-quality materials and on-time Reduce rework (fewer defective units) . . . . . . . . . . . . . . . . . . . . . . . . . . .. 730,000 delivery. . .. Redesigning the speakers to make them easier to manufacture . . . .. - X Data table Now work on the next three costs. Reduce warranty repair costs. . . . Eliminate inspection of raw materials . . . Lost sales due to disappointed customers. . .. . .. 925,000 Lost production time due to rework . . . . . . . . . . . . . . . 460,000 Reduce rework (fewer defective units) .. ... Work on the last two costs. Lost sales due to disappointed customers . . .. .. Lost production time due to rework . . . . . Print Done Requirement 2. Should Rock - On implement the quality program? Give your reasons. Rock - On implement the new quality program. The company by implementing the new program and also would longer term relations with current as well as potential new customers