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How Much Will External Failure Costs Change Assuming 400,000 Units

Question 82

Multiple Choice

How much will external failure costs change assuming 400,000 units of materials are received and that the product failures with customers are cut in half with the new receiving method?


A) $10,000 increase
B) $200,000 decrease
C) $320,000 decrease
D) $400,000 decrease
E) $500,000 decrease

Correct Answer:

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