Question
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
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
Maintaining equipment used to perform quality tests
$
2500
Costs of hiring a technician to fix 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 internal failure cost was:
Select one:
a.$9500.
b.$2000.
c.$7500.
d.$5000.
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