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Suppose that a company is spending $ 6 0 , 0 0 0 per year for inspecting, $ 3 0 , 0 0 0 for

Suppose that a company is spending $60,000 per year for inspecting, $30,000 for purchasing, and $40,000 for reworking products. A good estimate of nonvalue-added costs would be
1. $70,000.
2. $130,000.
3. $40,000.
4. $90,000.
5. $100,000

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