The manager at the Trailer Manufacturing plant has the option to continue to inspect,or redesign.Listed below are the estimated effects of quality improvement on costs of quality report obtained by the managerial accountant.
The manager must determine and compare the inspection option,or the option to redesign.
Required:
Compute and compare the total contribution margins of the inspection option and the redesign option.Should the manager choose the inspection option or the redesign option? Show all work.
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