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LaCrosse Products has a budget of $901,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,600 in variable costs. The new method will require $40,300 in training costs and $107,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 159,000 units. Appraisal costs for the year are budgeted at $601,000. The new prevention procedures will save appraisal costs of $50,500. Internal failure costs average $16 per failed unit of finished goods. The internal failure rate is expected to be 2% of all completed items. The proposed changes will cut the internal failure rate by one - third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 2% of units sold. The new proposal will reduce this rate by 55%. Assume all units produced are sold and there are no ending inventories. How much will internal failure costs change if the internal product failures are reduced by 1/3 with the new procedures? (Do not round intermediate calculations.) A. $21,916 decrease B. $494,000 decrease OC. $760,000 decrease OD. $16,960 decrease The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool crib has a variable demand. Historically, its demand has ranged from 290 to 400 small tools per day with an average of 345. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 1 minute to retrieve from the bins. Diane has been asked to consider plans to add the retrieval of larger tooling fixtures to her duties. She anticipates that there would be an average of 10 tooling fixtures per day requested. Each tooling fixture would take Diane 6 minutes to retrieve. What is the average waiting time, in minutes, if Diane continues to be the only worker that would retrieve the small tools as well as the larger tooling fixtures? O A. 150 minutes OB. 0.3 minutes OC. 4.7 minutes OD. 4.6 minutes

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