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Three Dog Bite Company: Warranty claims $ 170,000 Product

 

Customer Question

Three Dog Bite Company:


Warranty claims $ 170,000
Product liability lawsuits 200,000
Rework costs 600,000
Quality training 505,000
Inspection of incoming materials 900,000
Statistical process control 650,000
Waste 325,000
Field testing at customer sites 375,000
Total yearly sales $50,000,000



Refer to Three Dog Bite Company. What are the total prevention costs?



1. $1,430,000

2. $ 780,000

3. $2,055,000

4. $ 320,000

Submitted: 294 days and 21 hours ago.
Category: Single Problem
Value: $25
Status: CLOSED

Accepted Answer

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Expert:  FiveStarLaw replied 294 days and 21 hours ago.

Thank you again for directing your new question to me.

Here is my answer for comparison with your own:

3. $2,055,000
Prevention Costs = Quality training + Inspection of incoming materials + Statistical process control

If you have any further questions, I am happy to assist you. You can start your new question with "for FiveStarLaw" and send it to the appropriate legal, tax or homework category so that the question is directed to me and I can give your question my immediate attention

Thank you very much,
FiveStarLaw

Expert TypeLawyer
Category: Single Problem
Pos. Feedback: 100.0 %
Accepts: 82
Answered: 6/29/2012

Experience: 25 years of experience helping people like you.

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