Lazy Linda Kitchen Appliances manufactures small kitchen appliances such as toasters and blenders. Last month Lazy Linda recorded the following quality costs:

Discarded electrical components due to defects $ 2000

Managing customer complaints $ 3000

Quality training programs for employees $ 5000

Supplier audit $ 6000

Process inspection $ 4500

Work-in-process inspection $ 5000

Costs of hiring a technician to x a machine breakdown $ 3000

Legal fees paid to a customer whose pet mouse was

electrocuted due to a faulty toaster $ 6000

Lazy Linda's total prevention cost was:

Select one:

A. $14 000.

B. $5000.

C. $11 000.

D. $15 500.

All the following actions will increase return on investment except :

.

Select one:

A. An increase in sales revenues.

B. A decrease in the company's invested capital.

C. A decrease in the number of units sold.

D. A decrease in operating expenses.

The following information relates to Black's Mount Ltd:

Total assets $ 6 000 000

After tax operating income $ 900 000

Current liabilities $ 500 000

Weighted average cost of capital 12%

What is its economic value added?

Select one:

A. $292 000

B. $120 000

C. $180 000

D. $240 000