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Problem:

The following table lists all costs of quality incurred by Sam's Surf Shop last year.

Annual inspection costs $ 155,000
Annual cost of scrap materials 286,000
Annual rework cost 34,679
Annual cost of quality training 456,000
Annual warranty cost 1,546,000
Annual testing cost 543,000

Required: What was Sam's appraisal cost for quality last year?

Solve the given problem and show all work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91147925

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