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SECTION B Question 3 Kitty Fashion manufactures cat fashion clothing and accessories. Kitty Fashion is well known in Australia for designing fashionable and innovative cat
SECTION B Question 3 Kitty Fashion manufactures cat fashion clothing and accessories. Kitty Fashion is well known in Australia for designing fashionable and innovative cat clothes and accessories. Last month the company records the following environment costs: Environment costs Costs of hiring a technician to fix a pollution decontamination machine breakdown 5, 500 Inefficient usage of electricity 5, 000 Operating the carbon emissions capture machine 5, 000 Lost contribution margin from future sales clue to poor environmental reviews 1, 200 Develop cat accessories production process to reduce waste 4, 200 Auditing production wastage act ties 2, 200 Developing environmental awareness training program for employees 2, 400 Evaluating existing suppliers' environmental performance 2, 800 Developing contamination performance measures 2, 300 Treating and disposing of production waste 3, 540 Assessing environmental accreditations of potential suppliers 1, 760 Cleaning up of contaminated soil 1, 600 . Please do NQT input any symbols (e.g.,$ or a. Calculate Kitty Fashion's total prevention cost. (2 marks) E b. Calculate Kitty Fashion's total detection cost. (2 marks) c. Calculate Kitty Fashion's total internal failure cost. (2 marks) d. Calculate Kitty Fashion's total external failure cost. (2 marks) w Question 3 (e) To focus on designing fashionable and innovative clothes for dogs Kitty Fashion's CEO is considering outsourcing the manufacture of their clothing lines to PawsGarb a supplier who manufactures pet clothes for Australian and international pet clothing companies. However, the CFO is concerned that PawGarb may leak their design and fashion concepts to Kitty Fashion's competitors. The CFO recall being burnt by a previous manufacturer of their dogs accessories who subcontracted out the production of some products to another smaller-scale manufacturer that leaked their designs to Kitty Fashion's competitors. Question 3 (e) (i) Identify one (1) outsourcing risk faced by Kitty Fashion relating to the outsourcing of the manufacture of their clothing line. Draw on case information to explain your answer. (2 marks) 'JA'BI.'v $%5'5E Risk: Explanation: Question 3 (e) (ii) Drawing on case information, suggest two (2) actions that Kitty Fashion can take to mitigate the risk identified in part (i). (5 marks) IAVBII' 35%5'563 Action 1: Action 2
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