The Bean Boiler is Primo Caf's most basic model. The main materials used in manufacturing the Bean Boiler are aluminum and plastic. There are lots of suppliers for these materials. At present, Primo Caf's total cost for producing a Bean Boiler is $13 per unit and the product is competitively priced at $20 per unit. There are lots of other coffee makers that are very similar to the Bean Boiler on the market. Still, sales of the Bean Boiler are very stable. The company reliably sells 24,625 to 25,375 units of this product per month. The Family Man is Primo Caf's mid-market offering. Primo Caf manufactures most of the Family Man in-house, but buys the glass pot and the electronics that control the on/off function and the timer. At present, final assembly of the inhouse manufactured parts and the purchased sub-components occurs at Primo Caf's facility in Grand Rapids. Total cost for producing the Family Man is currently $32 per unit and each unit is sold for \$34.99. The Family Man's sleek, artistic design and range of unique colors helps to distinguish it from a wide selection of similar products offered by competitors. Prices for direct competitors range from $25 to $45. Sales of the Family Man range from 19,400 to 20,600 units per month. The Caffissimg is Primo Caf's high-end offering. Primo Caf produces the external metal parts of the casing for the Caffissime in-house, but buys all of the important sub-components from external suppliers. The most important sub-components for the Caffissime are the gauges that regulate the temperature and pressure of the water as it is forced through the coffee grounds. The proper working of these gauges ensure that the Caffissimg produces a perfect cup of coffee at brewing. The Caffissimo's design is a closely held company secret. The machine has won industry awards both in terms of its coffee making process and its external looks. Currently, the Caffissimo costs Ils for $600. Because of the relatively high price and unique design, demand for t to predict. Over the past year, demand has ranged from 8,500 to 11,500 units Marco is looking for ways to reduce production costs related to the Bean Boiler. Inside the Bean Boiler is a plastic liner that fits into the outer aluminum housing. His idea is to go with a new overseas supplier for this plastic liner. The new supplier would be able to reduce the Bean Boiler total cost from $13.00 to $12.75 per unit. This change could add 1.3\% margin to the Bean Boiler product line. Karla, the Director of Quality Management, has evaluated the plastic liners and found that not all of them meet the BPA-free plastic requirement for food products required by the FDA. In Karla's sample, she found that roughly 7% of the plastic liners do not meet FDA requirements. Your current supplier, JAB Plastics, guarantees BPA-free plastic is used, and Primo Caf, in many years of testing, has never found a defective plastic liner from JAB Plastics. Primo Caf has printed on the retail box and in product literature that all plastics used in the Bean Boiler are BPA-free. It would be Karla's job to find out which plastic liners are faulty. She personally checks every product that Primo Caf makes before it is shipped to a retailer. Karla thinks the company would need to hire a new full-time employee to help her check finished products to make sure no faulty plastic liners get into the hands of customers. This new employee would perform a quick test of the liner before the Bean Boiler is sealed in its retail box. Marco thinks that hiring a new quality manager to check finished products would be a great idea, since quality is critical to maintaining Primo Caf's reputation. You're still worried about quality issues and the potential costs associated with a product failure. Given the information above - and the information for the Bean Boller on Page 1 - complete the iollowings 1. A table showing the potential benefits (Pro's) and costs (Con's) of moving to the overseas supplier. Quantily the benefits and costs as much as possible. 2. Based on the potential benefits and costs you listed, provide a recommendation to Marco on whether you think Primo Caf should go with this new supplier. Assuming.that Primo Caf ultimately ends up using this new supplier, apply the cost of quality concepts/framework from class to do the following: 3. Respond to Marco and Karla's suggestion that Primo Cafe needs to hire a new full-time employee to help her check finished products. 4. Make some concrete recommendations as to how and where Primo Caf could best invest its resources to ensure that the Bean Boller remains a quality product