TOYS R US produces a fidget spinner with a high cost of quality. All 17.500...
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TOYS R US produces a fidget spinner with a high cost of quality. All 17.500 fidget spinner were inspected last year, and 6% had problems. The problem can be repaired at a cost $2.00 per fidget spinner. Another 2% of the 17,500 products had problems, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to TOYS R US for repair. Shipping costs are $6.00 per product and repair costs are $3.00 per product Negative publicity will result in a loss of future contribution margin of $220 for each external failure unit How much were the internal and external failure cost combined? $752.500 $75.250 $94.150 $82.250
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