Clason, Inc. manufactures door panels. Suppose Clason is considering spending the following amounts on a new total quality management (TQM) program: 

Strength-testing one item from each batch of panels.................................................. $ 68,000 

Training employees in TQM ................................................................................................27,000 

Training suppliers in TQM ....................................................................................................39,000 

Identifying suppliers who commit to on-time delivery of perfect-quality materials

Clason expects the new program would save costs through the following: .................58,000

Avoid lost profits from lost sales due to disappointed customers ..............................$ 86,000 

Avoid rework and spoilage.....................................................................................................63,000 

Avoid inspection of raw materials ........................................................................................57,000 

Avoid warranty costs ..............................................................................................................15,000

Requirements 

1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 

2. Should Clason implement the new quality program? Give your reason.