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Three Dog Bite Company: Warranty claims $ 170,000 Product liability lawsuits 200,000 Rework costs 600,000 Quality training 505,000 Inspection of incoming materials 900,000 Statistical process

Three Dog Bite Company:

Warranty claims

$ 170,000

Product liability lawsuits

200,000

Rework costs

600,000

Quality training

505,000

Inspection of incoming materials

900,000

Statistical process control

650,000

Waste

325,000

Field testing at customer sites

375,000

Total yearly sales

$50,000,000

Refer to Three Dog Bite Company. What are the total prevention costs?

$ 320,000
$1,430,000
$ 780,000
$2,055,000

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