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please help remier Corp expects to spend $800,300 in 2020 in appraisal costs if it does not change its incoming materials inspection method. If it
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remier Corp expects to spend $800,300 in 2020 in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $60,600 in fixed appraisal costs and variable costs of $0.50 per unit of finished product. The new method involves $140.400 in training costs and an additional $150,100 in annual equipment rental. Internal failure costs average $240 per failed unit of finished goods. During 2019, 6% of all completed items had to be reworked. External fallure costs average $460 per failed unit The company's average external failures are 1% of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just - in - time inventory ordering method is used. What would be the change in the external fallure budget, if 600,100 units are sold and assuming extemal failures are reduced by 12% A. $250,050 decrease B. $331,255 decrease c. $48,018 increase D. $304.114 decrease Step by Step Solution
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