Tran - North American Industries Inc. is looking at a change in its manufacturing process that will cause manufacturing cycle time to increase from 250 hours to 425 hours. The increase in the manufacturing time will result in an estimated loss in revenues of $18,000. Carrying costs are estimated at $2.00 per hour and the controller estimates that 40 orders for raw materials are expected for the year. What is the expected change in revenues as a result of the increase in manufacturing cycle time? (Round the final answer to the nearest whole dollar.) O A. $18,000 OB. $2,000 OC. $32,000 OD. $34,000 Premier Corp expects to spend $800,300 in 2017 in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $60,900 in fixed appraisal costs and variable costs of $0.50 per materials units received. The new method involves $140,700 in training costs and an additional $151,000 in annual equipment rental. Internal failure costs average $190 per failed unit of finished goods. During 2016, 4% of all completed items had to be reworked. External failure costs average $420 per failed unit. The company's average external failures are 1% of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just-in-time inventory ordering method is used. What is the net effect on appraisal costs for 2017, assuming the new receiving method is implemented and that 800,700 material units are received? ERE O A. $4,002 increase B. $169,550 decrease OC. $291,700 decrease OD. $1,279 increase