One of Camely Chemicals facilities manufactures a hazardous chemical. The following represents the financial information from the

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One of Camely Chemicals’ facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years:


Required

a. Classify these items into prevention (P), appraisal (A), internal failure (IF), or external failure (EF) costs.

b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2.

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