A quality manager recommends spending $10,000 to eliminate product failures that are costing the company...

 The quality manager’s recommendation involves spending $10,000 to eliminate product failures that currently cost the company $15,000 per year. To determine the expected return on investment (ROI), we use the formula mentioned above. The annual savings from eliminating failures are $15,000, and the investment cost is $10,000. Calculating the ROI yields a value of 150%, indicating a positive return on the proposed investment12.