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Calculate the total prevention cost

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Reference no: EM132862894

Quality Cost Problem - Burrow Company's Profit for a defective unit P25Cost to rework a defective unit P12 quality report for October 2019 showed the following information:

Profit for a good unit P60

Cost to process a returned unit P23

Quality training P23,000

Quality technology P100,000

Market research and methods costs P67,000

Monitoring and inspection costs P120,000

Product verification costs P30,000

Litigation related to total product failure P60,000

Opportunity cost of lost customers while litigation is being settled P80,000

Total defective unit 10,500

Number of units reworked 7,500

Number of customer units returned 1,850

Required -

1. Calculate the total prevention cost.

2. Calculate the total appraisal cost.

3. Calculate the total external failure cost.

4. Calculate the total internal failure cost.

5. Calculate the total quality cost.

Reference no: EM132862894

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