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QC Corp has the following budget amounts for the current year: $1,050,000 for prevention costs and $840,000 for appraisal costs. Internal fallure equals $100 per
QC Corp has the following budget amounts for the current year: $1,050,000 for prevention costs and $840,000 for appraisal costs. Internal fallure equals $100 per falled item and external failure has a total budget of $630,000. The Product Testing department has proposed a new method of testing products. If management decides to Implement the new method, $2.10 per unit of appraisal costs will be saved, up to a level of 150,000 tests. No additional savings are expected past the 150,000 level. The new method Involves $99,750 In training costs and $68,250 In yearly testing supplies. If the new testing method is Implemented what is the revised budget for appraisal costs, assuming 525,000 units are tested during the current year? Multiple Choice O $693.000 $483.000 O $357.000 $1.323.000
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