Requirements 1. Identify total costs of quality by category (appraisal, internal failure, and external failure). 2. Safe Ride is concerned with the high up-front cost of inspecting all 100,000 units. It is considering an alternative internal inspection plan that will cost only $2.50 per car seat inspected. During the internal inspection, the alternative technique will detect only 3.0% of the 100,000 car seats that have stitching problems. The other 6.0% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 3. What factors other than cost should Safe Ride consider before changing inspection techniques? Print Done Safe Ride produces car seats for children from newborm to 2 years old. Safe Ride's only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an intemal inspection. A (Cick the icon to view additional information.) Read the requirements Requirement 1. Identity total costs of quality by category (appraisal, internal failure, and external failure.) Costs of quality Appraisal Internal failure External falure Total costs of quality Requirement 2. Sale Ride is concemed with the high up-front cost of inspecting all 100,000 units. It is considering an alternative intenal inspection plan that will cost only $2.50 per car seat inspected. During the internal inspection, the atemative technique will detect only 3.0% of the 100,000 car seats that have sttching problems. The other 6.0% will be detected ater the car seats are sold and shipped. What are the total costs of quality for the alternative technique? Appraisal cost Internal falure cost Out of pocket external falure cost Opportunity cost of external falure Total cost of quality Requirement 3. What factors other than cost should Safe Ride consider before changing inspection techniques? OA. There could easily be serious reputation effects if the percentage of extemal failures increases significantly. This rise in extemal failures may lead to costs greater than $250 per failure due to lost sales OB. Hgher extemal falure rates may increase the probability of lawsults OC. Both of the above. More Info Inspection costs $6.00 per car seat, and the repairs cost $1.00 per car seat. All 100,000 car seats were inspected last year, and 7% were found to have problems with the stitching. Another 2% of the 100,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Safe Ride and repaired. Shipping costs are $13.00 per car seat, and repair costs are $1.00 per car seat. Negative publicity will result in a loss of future contribution margin of $250 for each external failure. Print Done