E Quiz: Quiz 1 New Quest - X Data table Rock - On manufactures high-quality audio speakers. Suppose Rock - On is considering spending the following amounts on a new quality (Click the icon to view the spending budget on the new quality program.) Additional 20 minutes of testing for each speaker . . . . . . . . .... . .$ 660,000 Rock - On expects this quality program to save costs as follows: Negotiating with, and training suppliers to, obtain higher-quality materials and on-time (Click the icon to view the cost savings.) delivery . . . .. 300,000 It also expects this program to avoid lost profits from the following: Redesigning the speakers to make them easier to manufacture . . . . . . . . . . . . . . . . . . . . . . . . ... 1,480,000 (Click the icon to view the lost profits avoided.) Requirements - X Data table Start with the first three costs. Reduce warranty repair costs ..... $ 340,000 Eliminate inspection of raw materials . 520,000 Additional 20 minutes of testing for each speaker. . . . . . . . . Negotiating with, and training suppliers to, obtain higher-quality materials and on-time Reduce rework (fewer defective units) . . . .. .. . .. . . . . . . . ... 730,000 delivery. . . . Redesigning the speakers to make them easier to manufacture X Appraisal costs Data table Now work on the next three costs. External failure costs Reduce warranty repair costs. . . . Lost sales due to disappointed customers . .. 925,000 Eliminate inspection of raw materials . . . Internal failure costs Lost production time due to rework . . . . . . . . . . . . . . 460,000 Reduce rework (fewer defective units) .. . . Work on the last two costs. Prevention costs Lost sales due to disappointed customers . . . Print Done Lost production time due to rework . . Requirement 2. Should Rock - On implement the quality program? Give your reasons. Rock - On implement the new quality program. The company by implementing the new program and also would longer term relations with current as well as potential new customers