Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components of the $400,000 $240,000 is foed appraisal costs. The variable inspection cost is $0.20 per component it takes two components for each finished product. Internal fafure costs average 580 per failed unit of finished goods. In 2019, five percent of all completed items had to be reworked External fare costs average 200 per failed unt the company's average external failures are one percent of units sold. The company manufactures all units as ordered and carries no materials inventores. Seeking to decreases total cost of quality COQ Verizon contracted Quality is Free Consultants, Inc. to study ways to improve product quality and to reduce costs. Upon completion of the study. OFC recommended automatic inspection equipment that requires a $60.000 annual cost for training and S750.000 for equipment rental and maintenance. The new equipment will eliminate $40,000 of the feed appraisal cost reduce the amount of unacceptable product units in the manufacturing process by 10 percent, and cut product failures by hat The company paid the consulting firm $100.000 in early January 2020 for the project Verzon expects no changes in its operating level in the foreseeable future. The $100.000 payment to the consulting from for Cost of Quality Coreporting purposes is best classified as an Multiple Choice o Prevention com Aprel cost Demarco