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Lazy Linda Kitchen Appliances manufactures small kitchen appliances such as toasters and blenders. Last month Lazy Linda recorded the following quality costs:
Discarded electrical components due to defects $2000
Managing customer complaints $3000
Quality training programs for employees $5000
Supplier audit $6000
Process inspection $4500
Work-in-process inspection $5000
Maintaining equipment used to perform quality tests $2500
Costs of hiring a technician to fix a machine breakdown $3000
Legal fees paid to a customer whose pet mouse was electrocuted due to a faulty toaster $6000
Question 1: Lazy Linda's total internal failure cost was:
Select one:
Option a. $9500.
Option b. $2000.
Option c. $7500.
Option d. $5000.
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