Problem: Three Dog Bite Company:
Warranty claims $ 170,000
Product liability lawsuits 200,000
Rework costs 600,000
Quality training 505,000
Inspection of incoming materials 900,000
Statistical process control 650,000
Waste 325,000
Field testing at customer sites 375,000
Total yearly sales $50,000,000
Refer to Three Dog Bite Company. What are the total prevention costs?