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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