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uality Initiative Decision Wharedale manufactures high-quality speakers. Suppose Wharfedale is considering spending for the following amounts on a new quality program. Additional 20 minutes of

uality Initiative Decision Wharedale manufactures high-quality speakers. Suppose Wharfedale is considering spending for the following amounts on a new quality program. Additional 20 minutes of testing for each speaker $600,000 Negotiating with and training suppliers to obtain higher-quality materials And on time delivery $300,000 Redesigning the speakers to make them easier to manufacture $1,400,000 Wharfedale expects this uality program to save costs as follows: Reduced warranty repair costs $200,000 Avoid inspection of raw materials $400,000 Rework avoided because of fewer defective units $650,000 It also expects this program to avoid lost profits from the following: Lost sales due to disappointed customers $850,000 Lost production time due to rework $300,000 Classify each of these costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure). Should Wharfedale implement the quality program? Give your reasons

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