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Verizon Manufacturing Company spent $400.000 in 2019 to inspect incoming components of the $400,000 $240.000 is found appraisal costs. The variable inspection cost is $0.20 per component it takes two components for each finished product. Internal fallure costs average 580 per filed unit of finished goods in 2019. Sve percent of all completed es had to be worked Eemallure coverage $200 per failed unit. The company's average external failures are one percent of units sold. The company manufactures allunts as ordered and cames no materia inventores. Selong to decreases tal cost of way (COO) Verizon contracted Quality is Free Consultants, Inc. (IFC to study was to improve product quality and to reduce costs Upon completion of the study. OFC recommended auto inspection equipment that requires a 60000 annual cost for training and $150.000 for equipment rental and maintenance. The new equipment will mate $40.000 of the foredrasal cost reducere amount of unacceptable product units in the manufacturing process by 10 percent and cut product falures by hat The company and the consulting from $100.000 in early January 2020 for the project Veron expects no changes operating level in the foreseeable future The $100.000 payment to the consulting firm for cost of Quality Cod reporting purposes is best fied as a Muluple Choice 0 Prevention cost 0 U pricom U nel flore cow O marec 0 o A ve cost

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