Itawa Appliances identified the following failure costs during 2010:

a. Rearrange the rows in descending order of magnitude based on the Total Dollars column, and prepare a table using Pareto analysis with the following headings:

b. Which models account for almost 80 percent of all failure costs?
c. Focusing on the models identified in (b), prepare a table using Pareto analysis to identify the types of failure causing the majority of failure costs. Use the following headings for your table:

d. Describe the problem areas for which to use preventive measures first. How, if at all, does this answer reflect the concept of leveragingexpenditures?

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COST OF FAILURE BY TYPE Wiring Product Mixer Blender Motor Housing All Other Total Dollars 46,240 65,280 24.480 $136,000 $16000 4000 0,240 28,000 6,000 11,280 Bread Maker 2000 1960 6000 4520 32000 27960 $54240 21,800 14,000 12,000 Total Model Dollars % of Total Cumulative % of Total Failure Type Dollars % of Total Cumulative % of Total