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The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer: Quality inspections during processing $10,800 Cost of quality training programs
The following are the expected quality costs of Best Bike Ltd, a major bicycle manufacturer: Quality inspections during processing $10,800 Cost of quality training programs $ 25,700 Cost of replacement bikes provided under warranty $13,500 Laboratory testing of bikes and components $16,800 Cost of rewelding faulty joints discovered during $13,400 processing Sales commissions on faulty bikes returned by $7,600 customers Operating an X-ray machine to detect faulty welds $23,500 Rework on defective wheels $18,900 Lost contribution on time to correct production line $22,300 quality problems Contribution margin forgone on lost future bike sales $11,900 Calculate the total internal failure costs. $51,100 0 $54,600 $32,300 O $41,200 $33,000
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