Requirement 6. Safe Rideris concerned with the high up-front cost of inspecting all250,000units. It is considering an alternative internal inspection plan that will cost only $1.00per car seat inspected. During the internal inspection, the alternative technique will detect only 1.0%of the 250,000 car seats that have stitching problems. The other5.0% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? (Round your answers to the nearest whole number.)

Appraisal cost	$_____
Internal failure cost	$______
Out of pocket external failure cost	$
Opportunity cost of external failure	$_________
Total cost of quality	$_______

Safe Rider produces car seats for children from newborn to 2 years old. The company is worried because one of its competitors has recently come under public scrutiny because of product failure. Historically, Safe Rider's only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection. The cost of the inspection is $5 per car seat, and the repair cost is $1.75 per car seat. All 250,000 car seats were inspected last year and 5% were found to have problems with the stitching in he straps during the internal inspection. Another 1% of the 250,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were old and shipped to customers needed to be shipped back to Safe Rider and repaired. Shipping costs are $14 per car seat, and repair costs are $1.75 per car seat. However, the out-of-pocket costs (shipping and repair) are not the only costs of defects not discovered in the internal inspection. Negative publicity will result in a loss of contribution margin of $150 for each external failure. Read the requirements, - X Requirements 1. Calculate appraisal cost. 2. Calculate internal failure cost. 3. Calculate out-of-pocket external failure cost. 4. Determine the opportunity cost associated with the external failures. 5. What are the total costs of quality? 6. Safe Rider is concerned with the high up-front cost of inspecting all 250,000 units. It is considering an alternative internal inspection plan that will cost only $1.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 1.0% of the 250,000 car seats that have stitching problems. The other 5.0% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 7. What factors other than cost should Safe Rider consider before changing inspection techniques? Print Done