Current Attempt in Progress A retail website sells a variety of products, including clothes, electronics, furniture, sporting goods, books, video games, CDs, and DVDs, among other items. An average customer order is $40. Weekly total variable costs are $365,000 and weekly fixed costs are $80,000. The company averages 19.000 orders per week and 20% of all orders are returned for a variety of reasons besides the customer not liking the product, including product misinformation on the website, errors in fulfilling the order, incomplete orders, defective product, breakage, and so forth. 30 percent of all returned orders are turned around and refilled correctly per the customer's desire, but at a cost (for handling, packaging, and mailing) of $12 per order, while the remaining 70% of returned orders are lost. In addition, it is estimated that half of the customers associated with lost orders will not return to the website at a cost of $20 per order. Determine the weekly cost of poor quality for the website. (Round answers to O decimal places. e.g. 5.275.) Weekly cost $ The company can implement a quality improvement program for $800.000 a year that will reduce the percentage of returned orders to 3%; should the company invest in the program? Total cost of defects S The company Without quality Improvements With quality improvements invest in the program. Attempts: 0 of 2 used Submit Answer

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