Giant Construction Toys Corp. is using a costs-of-quality approach to evaluate design engineering efforts for a new
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1. Calculate the predicted quality cost savings from the design engineering work.
2. The company spent $70,000 on design engineering for the new toy robot. What is the net benefit of this "preventive" quality activity?
3. What major difficulty would management have had in implementing this costs-of-quality approach? What alternative approach could it use to measure quality improvement?
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