Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is all the same question, I took multiple pictures to get all the information through. More Info Inspection costs $5.00 per car seat, and

image text in transcribed
image text in transcribed
image text in transcribed
This is all the same question, I took multiple pictures to get all the information through.
More Info Inspection costs $5.00 per car seat, and the repairs cost $2.00 per car seat. All 125,000 car seats were inspected last year, and 9% were found to have problems with the stitching. Another 2% of the 125,000 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 Tot Traveler and repaired. Shipping costs are $15.00 per car seat, and repair costs are $2.00 per car seat. Negative publicity will result in a loss of future contribution margin of $150 for each external failure. Done Print Tol Traveler produces car seats for children from newborn to 2 years old. Tot Traveler's only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection ACick the icon to view additional information) Read the reements Requirement 1. Idenity total costs of quality by category (appraisal, internal failure, and extemal fallure) Costs of quality Apprainal Intemal tailure Extermal falure Total costs of quality Requirement 2. Tot Traveler is concemed with the high up-tront cost of inspecting all 125 000 units tis considering an aternative intermal inspection plan that will cost only $150 per car seat inspected During the internal Inspection the atemative technique will detect onily 6.0% of the 125.000 car seats that have stitching problems The ofher 50% will be detected aher the car seats are sold and shipped What are the total costs of quality for the aternative technique? Apprainal cost Internal tailure cost Out of pocket extemal falure cost Enter any number in the edt feids and then continue to the next question 121 PM Tot Traveler produces car seats for children from newborn to 2 years old Tot Traveler's only problem with its car seats was staching in the straps. The problem can usually be detected and repaired during an intermal inspection A (Cick the icon to view additional information.) Read the requirements inspection, the alternative technique will detect only 60% of the 125.000 car seats that have stitching problems The other 5.0% will be detected ater the car seats are sold and shipped What are the total costs of qualty for the aternative techeique? Appraisal cost Internal falure cost Out of pocket external failure cost Opportunity cost of extemal falure Total cost of quality Requirement 3. What factors other than cost should Tot Traveler consider before changing inspection techniques? OA Higher external falure rates may increase the probability of lawsuits OB. There could easly be serious reputation effects if the percentage of extemal falures increases signicantly This rise in eternal failures may lead to costs greater than $150 per falure due to lost sales OC. Both of the above OD. Neither of the above, cost is the only factor Tot Traveler should consider before changing inspection technigues Enter any number in the edit felds and tthen continue to the next question 121 PM D4 00 ING 12/2 Q Tune hee to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Based Auditing

Authors: Phil Griffiths

1st Edition

0566086522, 9780566086526

More Books

Students also viewed these Accounting questions

Question

Please help me evaluate this integral. 8 2 2 v - v

Answered: 1 week ago