HNW Ltd HNW Ltd

Multiple Choice

HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW's processors as being of "poor quality". As a result, HNW's management team has begun to analyze all costs associated with their food processors in more detail, and the following data has been compiled:
Refer to the HNW Ltd. information above. What are HNW's total external failure costs?

A) $130,000
B) $160,000
C) $180,000
D) $100,000