low in product quality. Shocked by this result, Jorge Gomez, Mercury's president, set up a task...

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low in product quality. Shocked by this result, Jorge Gomez, Mercury's president, set up a task force to Implement a formal quality Improvement program. Included on this task force were representatives from the Engineering, Marketing. Customer Service. Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below: Prevention costs: Machine maintenance Training suppliers Quality circles Total prevention cost Appraisal costs: Incoming inspection Final testing Total appraisal cost Mercury, Incorporated Quality Cost Report (in thousands) Internal failure costs: Rework Last Year This Year $ 80 $ 135 25 35 80 195 35 55 95 105 130 160 65 145 Scrap 55 85 Total internal failure cost 120 230 External failure costs: Warranty repairs Customer returns Total external failure cost Total quality cost Total production cost Required: 105 45 335 95 440 140 $ 770 $ 725 $ 4,950 $ 5,550 1. Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. Note: Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3). Mercury, Incorporated Quality Cost Report (in thousands) Last Year Percentage of Amount Total Production Cost Percentage of Total Quality Amount This Year Percentage of Total Production Cost Percentage of Total Quality Cost Prevention costs: Machine maintenance S 80 Training suppliers 0 Quality circles 0 Total prevention costs 80 Cost S 135 25 35 195 Appraisal costs: Incoming inspection 35 55 Final testing 95 105 Total appraisal costs 130 160 Internal failure costs: Rework 65 145 Scrap 55 85 Total internal failure costs 120 230 External failure costs: Warranty repairs 105 45 Customer returns 335 95 Total external failure costs 440 140 Total quality cost $ 770 S 725 Total production cost S 4,950 S 5,550 low in product quality. Shocked by this result, Jorge Gomez, Mercury's president, set up a task force to Implement a formal quality Improvement program. Included on this task force were representatives from the Engineering, Marketing. Customer Service. Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below: Prevention costs: Machine maintenance Training suppliers Quality circles Total prevention cost Appraisal costs: Incoming inspection Final testing Total appraisal cost Mercury, Incorporated Quality Cost Report (in thousands) Internal failure costs: Rework Last Year This Year $ 80 $ 135 25 35 80 195 35 55 95 105 130 160 65 145 Scrap 55 85 Total internal failure cost 120 230 External failure costs: Warranty repairs Customer returns Total external failure cost Total quality cost Total production cost Required: 105 45 335 95 440 140 $ 770 $ 725 $ 4,950 $ 5,550 1. Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. Note: Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3). Mercury, Incorporated Quality Cost Report (in thousands) Last Year Percentage of Amount Total Production Cost Percentage of Total Quality Amount This Year Percentage of Total Production Cost Percentage of Total Quality Cost Prevention costs: Machine maintenance S 80 Training suppliers 0 Quality circles 0 Total prevention costs 80 Cost S 135 25 35 195 Appraisal costs: Incoming inspection 35 55 Final testing 95 105 Total appraisal costs 130 160 Internal failure costs: Rework 65 145 Scrap 55 85 Total internal failure costs 120 230 External failure costs: Warranty repairs 105 45 Customer returns 335 95 Total external failure costs 440 140 Total quality cost $ 770 S 725 Total production cost S 4,950 S 5,550

Answer rating: 100% (QA)

The expanded quality cost report is shown below Last Year Amount Percentage of Total Production Cost ... View the full answer