Answer
If the QC Manager makes a Type-I error, he will reject the null hypothesis (when it is in fact true) and re-calibrate the machine (which is unnecessary and costs a lot of money and time).
On the other hand, if he make a Type-II error, he will accept the null hypothesis (when it is in fact false) and he will not re-calibrate the machine, which results in faulty production.
Work Step by Step
Given above.