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Wharfedale manufactures high quality speakers. Suppose Wharfedale is considering spending the following amounts on a new quality program: (Click the icon to view the information.)

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Wharfedale manufactures high quality speakers. Suppose Wharfedale is considering spending the following amounts on a new quality program: (Click the icon to view the information.) Wharfedale expects this quality program to save costs as follows: (Click the loon to view the information.) It also expects this program to avoid lost profits from the following: Click the foon to view the information.) 1. Classify each of these costs into one of the four categories of quality costs (prevention, apponital, internal failure, external failure) 2. Should Wharfedale implement the quality program? Give your reasons, 1. First classify each of these contes into one of the four categories of quality costs, then prepare a cont benefit analysis of the proposed quality program based on the four categorien identified. (Ute a minus sign or parentheses for savings amounts) Cost (Benefit) Analysis Costs (Savings) Prevention conta: Appraisal costs: Internal failure costs: External fallure costs Redesigning the speakers to make them easier to manufacture Savings on inspection of raw materials C Savings on lost profits from lost production due to rework Savings on lost profits from fost sales due to disappointed oustomers lestion Data Table X lost profits from the following: nation) bone of the four categories of quality costs nilure, external failure) he quality program? Give your reasons. $ 830,000 Additional 20 minutes of testing for each speaker.. Negotiating with and training suppliers to obtain higher quality materials and on-time delivery Redesigning the speakers t rs to make them easier to manufacture..... $ 300,000 $ 1,403,000 1. fo the proposed quality program based on the Print Done Data Table Appraisal costs: Lost sales due to disappointed customers Lost production time due to rework 5851,000 $ 310,000 Int Print Done Data Table Reduced warranty repair costs Avold Inspection of raw materials Rework avoided because of fewer defective units $ 200,000 $ 400,000 $ 654.000 NE 2 Print Done Cho fuention External failure costs: Netcost (benefit from implementing quality program 2. Should Wharfedale implement the quality program? Wharfedale the new quality program. The company implementing the new program by Choose from any list or enter any number in the input fields and then continue to the next

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