Question: Internal reports on quality at the Lakeside Publishing Company generated the following information for the School Division for the first three months of the year:

Internal reports on quality at the Lakeside Publishing Company generated the following information for the School Division for the first three months of the year:

Total sales ...........$50,000,000

Costs of quality:

Prevention ........... $ 523,000

Appraisal .......... 77,000

Internal failure ........ 860,000

External failure ........ 640,000

Compute the following:

a. Total costs of quality as a percentage of sales

b. Ratio of costs of conformance to total costs of quality

c. Ratio of costs of nonconformance to total costs of quality

d. Costs of nonconformance as a percentage of total sales


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