Inspection costs $6.00 per car seat, and the repairs cost $1.50 per car seat. All 250,000 car seats were inspected last year, and 3% were found to have problems with the stitching. Another 4% of the 250,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Safe Rider and repaired. Shipping costs are $12.00 per car seat, and repair costs are $1.50 per car seat. Negative publicity will result in a loss of future contribution margin of $300 for each external failure