More info Requirements Inspection costs $6.00 per car seat, and repairs cost $1.25 per car seat. All 150,000 car seats were inspected last year, and 7% were found to have problems with the stitching. Another 1% of the 150,000 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 Travel and repaired. Shipping costs are $12.00 per car seat, and repair costs are $1.25 per car seat. Negative publicity will result in a loss of future contribution margin of $250 for each external failure. 1. Identify total costs of quality by category (appraisal, internal failure, and external failure). 2. Safe Travel is concerned with the high up-front cost of inspecting all 150,000 units. Managers are considering an alternative internal inspection plan that will cost only $2.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 4.0% of the 150,000 car seats that have stitching problems. The other 4.0% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 3. What factors other than cost should Safe Travel consider before changing inspection techniques? Requirement 1. Identify total costs of quality by category (appraisal, internal failure, and external failure.) Requirement 3. What factors other than cost should Safe Travel consider before changing inspection techniques? A. Higher external failure rates may increase the probability of lawsuits. C. Both of the above. D. Neither of the above, cost is the only factor Safe Travel should consider before changing inspection techniques. More info Requirements Inspection costs $6.00 per car seat, and repairs cost $1.25 per car seat. All 150,000 car seats were inspected last year, and 7% were found to have problems with the stitching. Another 1% of the 150,000 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 Travel and repaired. Shipping costs are $12.00 per car seat, and repair costs are $1.25 per car seat. Negative publicity will result in a loss of future contribution margin of $250 for each external failure. 1. Identify total costs of quality by category (appraisal, internal failure, and external failure). 2. Safe Travel is concerned with the high up-front cost of inspecting all 150,000 units. Managers are considering an alternative internal inspection plan that will cost only $2.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 4.0% of the 150,000 car seats that have stitching problems. The other 4.0% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 3. What factors other than cost should Safe Travel consider before changing inspection techniques? Requirement 1. Identify total costs of quality by category (appraisal, internal failure, and external failure.) Requirement 3. What factors other than cost should Safe Travel consider before changing inspection techniques? A. Higher external failure rates may increase the probability of lawsuits. C. Both of the above. D. Neither of the above, cost is the only factor Safe Travel should consider before changing inspection techniques