Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the companys cell phones low in product quality. Shocked by this result, Jorge Gomez, Mercurys 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:

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Required:

$1.$ 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 $0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$

Transcribed Image Text:

Mercury, Inc. Quality Cost Report (in thousands) Last Year This Year Prevention costs: Machine maintenance $ 340 $140 Training suppliers 6 10 Quality circles 24 75 Total prevention cost 370 225 Appraisal costs: Incoming inspection 50 26 Final testing 165 82 Total appraisal cost 215 108 Mercury, Inc. Quality Cost Report (in thousands) Last Year This Year Prevention costs: Machine maintenance $ 340 $140 Training suppliers 6 10 Quality circles 24 75 Total prevention cost 370 225 Appraisal costs: Incoming inspection 50 26 Final testing 165 82 Total appraisal cost 215 108