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Venzon Manufacturing Company spent 5415.000 in 2019 to inspect incoming components of the $415.000, 5240,000 is fed appenal costs. The variable inspection cost is $0.20
Venzon Manufacturing Company spent 5415.000 in 2019 to inspect incoming components of the $415.000, 5240,000 is fed appenal costs. The variable inspection cost is $0.20 per component it takes five components for each finished product Internal failure costs average 580 per faited unit of finished goods in 2019 five percent of all completed items had to be reword. Etema fature costs average $200 per failed unit. The company's average external folures are one percent of units sold. The company manufactures all units as ordered and carries materials inventories Seeking to decrease its total cost of quality (CoQ Vertton contracted Quality Fee Consultants, Inc. (GFC) to study ways to improve product quality and to reduce costs Upon completion of the study. OFC recommended automatic inspection equipment that requires a 561600 annual cost for training and $158.000 for equipment rental and maintenance. The new equipment will enate SH.000 of the fewed appraisal costs, reduce the amount of unacceptable product units in the manufacturing process by 10 percent and cut product fatures by hat The company paid the consulting firm $112.000 in early auary 2020 for the project Verican expects no changes in its operating level in the foreseeable future How much do you expectature costs to change 54000 1000 den $140.000 de 505.000 D
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