Question 1 U / ZU PLS Company A has been experiencing lost sales and high returns recently, so they have decided to undertake a comprehensive quality program. The program would require additional inspection of products prior to shipment at an estimated cost of $45,000, and the upgrading of production equipment at an estimated cost of $400,000. Company A knows that if it undertakes this program, it will be able to reduce warranty repair costs by $25,000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision. Should Company A go ahead with the quality program? O They should, only if the benefit of avoiding lost profits is estimated to be over $445,000. O They should, only if the benefit of avoiding lost profits is estimated to be over $420,000. O Yes, they should, regardless of any other considerations. O No, they should not