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The company believes that if it upgrades one component of its product at an additional cost of $3.00 per unit, it will be able to

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The company believes that if it upgrades one component of its product at an additional cost of $3.00 per unit, it will be able to decrease its current warranty repair rate by 80%. The company also believes it will be able to sell 2,000 more units over the next year due to an enhanced reputation for quality. Dalton currently has enough excess capacity to make the 2,000 extra units needed to meet the increased demand Print Done Data Table The following data reflects current operations (prior to making the operational changes): Current production and sales level (in units) Sales price per unit Current variable cost of making and selling one unit Variable warranty repair costs per unit repaired Current warranty repair rate of units produced 101,000 100 85 15% Dalton Industries is contemplating some operational changes to reduce its overall costs ofWhat is the anticipated annual effect on operating income from adopting this quality quality. (Click the icon to view additional information.) (click the icon to view the additional information and data.) initiative? To answer this question, first calculate the total costs of quality before making the operational changes and then calculate the total costs of quality after making the operational changes. Compute the difference between the "before" and the "after" First, select the labels and then calculate the total costs of quality before making the operational changes. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Dalton Cost of Quality Analysis (Before changes) Prevention Costs: Costs Appraisal Costs: Internal Failure Costs: External Failure Costs: Total costs of quality Now calculate the total costs of quality after making the operational changes. Select the labels and then enter the amounts. (Enter a minus sign or parentheses for a benefit or cost saving. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Costs Dalton Cost of Quality Analysis (After changes) Prevention Costs (Benefits) Appraisal Costs Internal Failure Costs: External Failure Costs: Total costs of quality Compute the difference between the 'before' and the 'after. and select the appropriate label to reflect whether Dalton Industries will experience a net benefit or net cost from making the operational changes. Difference Choose from any list or enter any number in the input fields and then continue to the next

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