Compute the total failure cost


Rebecca's Pottery Loft makes the variety of handmade pottery items. She has asked for your advice upon one of the items manufactured: a clay pelican. The following information is provided:

Number of defective pelicans - 1,100

Number of pelicans returned - 150

Number of pelicans reworked- 200

Profit per defect-free pelican- $10.00

Processing cost of a returned pelican- $20.00

Profit per defective pelican- $5.00

Cost to rework defective pelican- $4.00

Total appraisal costs- $3,400

Total prevention costs- $6,000

A- Compute the total profits lost because Rebecca sold defective pelicans.

B- Compute the rework costs.

C- Compute the cost of processing customer returns.

D- Compute the total failure cost.

E- Compute the total quality cost.

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Mathematics: Compute the total failure cost
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