Five Stars Manufacturing expects to spend $$800,000$ in $2022$ in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $$80,000$ in fixed appraisal costs and variable costs of $$0\mathrm{.}40$ per unit of finished product. The new method involves $$120,000$ in training costs and an additional $$160,000$ in annual equipment rental. It takes four units of material for each finished product.

Internal failure costs average $$160$ per failed unit of finished goods. During $2022,5\%$ of all completed items had to be reworked. External failure costs average $$400$ per failed unit. The company's average external failures are $1\%$ of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just$-$in$-$timse inventory ordering method is used.

Required:

a$.$

What is the net effect on appraisal costs for $2022,$ assuming the new receiving method is implemented and that $800,000$ material units are received?

How much will internal failure costs change, assuming $800,000$ units of materials are

b$.$ received and that the new receiving method reduces the amount of UNACCEPTABLE product units in the manufacturing process by $10\%?$