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Quality Initiative Decision Wharedale manufactures high-quality speakers. Suppose Wharfedale is considering spending for the following amounts on a...
Quality Initiative DecisionSuppose Wharfedale is considering spending for the following amounts on a new quality program.$600,000Negotiating with and training suppliers to obtain higher-quality materials $300,000$1,400,000Wharfedale expects this uality program to save costs as follows:$200,000$400,000$650,000It also expects this program to avoid lost profits from the following:$850,000$300,000Classify each of these costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure).Should Wharfedale implement the quality program? Give your reasons.
