HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW's processors as being of "poor quality". As a result, HNW's management team has begun to analyze all costs associated with their food processors in more detail, and the following data has been compiled: Scrap costs $ 80,000 Quality training 75,000
Warranty claims 100,000 Rework costs 50,000 Inspection of incoming materials 30,000 Product quality audits 60,000 Statistical process control 40,000 Refer to the HNW Ltd. information above. What are HNW's total internal failure costs?
A) $50,000
B) $130,000
C) $230,000
D) $170,000
B
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