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Free Products us a curent year budget of $972,000 to prevention costs Freestate considering the automation of some prevention activities saving 586.400 in variable prevention

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Free Products us a curent year budget of $972,000 to prevention costs Freestate considering the automation of some prevention activities saving 586.400 in variable prevention costs. The new method will sequee 543.200 intring costs and 5108.000 in annual equipment costs The budgeted production level as 162.000 units. Appraisal costs for the year are budgeted at 3600.000 The new prevention procedures will save appraisal costs of $50,000 Internal failure costs average 55 per failed unit. The internal sturerate expected to be of all units. The proposed changes wil cut the internal lurerate by one-third Internal fare units are destroyed. External Mature costs average 554 persiled unit. The company's extemalfallure rates 400% of units sold. The new proposal will reducere ex falurerate by 50% How much do externa tature come change for changes are s anticipated with the new prevention automation Assume a fethed gooch units produced are sold and there is no beginning on ending inventories 300 o 760 1600

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