The CEO of Smith Snacks Corp. is concerned with the amount of resources currently spent on customer.

The CEO of Smith Snacks Corp. is concerned with the amount of resources currently spent on customer.

The CEO of Smith Snacks Corp. is concerned with the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the following logo: “Satisfaction guaranteed, or your money back.” Since the number of claims is high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: Warranty claims………………………………………………………………………………………. $ 432,000 Cost of defective products found at the inspection point…………………………….. $ 86,000 Training factory personnel………………………………………………………………………… $ 34,000 Recall of Batch # 59374…………………………………………………………………………….. $ 171,000 Inspecting products when halfway through the production process………………. $ 42,000 Cost of disposal of rejected products………………………………………………………… $ 14,000 Preventative maintenance on factory equipment………………………………………… $ 6,000 Production loss due to machine breakdowns……………………………………………… $ 16,000 Inspection of raw materials………………………………………………………………………. $ 5,000 Require

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