Water Industries' Quality Control Report for August Contains the Following

Multiple Choice

Water Industries' quality control report for August contains the following items.What would be the total of the external failure costs on the August quality control report for Water Industries? $$\begin{array} { | l | c | } \hline \text { Gathering, anabsis, and reporting quality data } & \$ 1,000 \\\hline \text { Inspecting raw materials received fromvendors } & 2,000 \\\hline \text { Testing and inspecting finished products } & 3,000 \\\hline \text { Visiting customer sites to test product } & 4,000 \\\hline \text { Designing product to reduce production problems } & 5,000 \\\hline \begin{array} { l } \text { Repairing andior replacing products under } \\\text { warranty }\end{array} & 6,000 \\\hline \text { Maintaining the equipment used to gather quality } \\\text { data } & 7,000 \\\hline \text { Cost (net) of materials wasted during production } & 8,000 \\\hline\end{array}$$

A) $4,000.
B) $6,000.
C) $7,000.
D) $14,000.