Premier Corp expects to spend $800,400 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 $60,200 in fixed appraisal costs and variable costs of $0.50 per unit of finished product. The new method involves $141,000 in training costs and an additional $151,000 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 failure costs average $480 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 chanfe in the external failure budget, if 600,300 units are sold and assuming external failures are reduced by 12%.

A. $304,152 decrease

B. $ 249,200 decrease

c. $48,024 increase

d. $345,773 increase