ALSEKO expects the new program to save costs through the following:

Avoid lost profits from lost sales due to disappointed customers $85,000

Avoid rework and spoilage $66,000

Avoid inspection of raw materials $49,000

Avoid warranty costs $25,000

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

- Should ALSEKO implement new quality program? Give your reason