Horizon Manufacturing Company spent $405,000 in 2021 to inspect incoming components. Of the $405,000.5240,000 is fixed appraisal costs. The voriable inspection cost is 5020 per component, it takes three components for each finvshed product. Internal faifure costs average $80 per failed unit of finished goods. In 2021, five percent of all completed items had to be reworked External fallure costs average 5200 per falled unit. The company's average enternal falures are one percent of units sold. The comparty manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ). Horizon contracted Quality-is.Free Consultants, Incorporated (GIFC) to study ways to improve proctuct qually and to reduce costs. Upon completion of the study. QIFC recommended automatic inspection equipment that requires a $63.200 annual cost for training related to the inspection/appraisal process and $166.000 for inspection equipment rental and maintenance. The new equiposent will eliminate $48.000 of the fixed appraisal costs, teduce the amount of unacceptable product units in the manufacturing process by 10 percent, and cut product follures by haif, The company. paid the consuting firm $124,000 in early January 2022 for the project. Horizon expects no changes in its operating level In the foreseeable future. What effect does the new equipment have on fotal appraisar costs? Mulvple Cheice 521,200 increese s31200 decense: What eftest does the new equicyesert heve on roeal apprainal costs? Mitiven Chorice N7taso nerese Brta00 mecrese bliriage increse 1231200 mintest Nis ctange