P19-5A Problem 19-4A provided both quantitative and qualitative information about Quantx's quality project, and asked you to perform a quantitative analysis to help Quantx's managers decide whether to embark on the project. Now consider some qualitative factors in Quantx's quality improvement project. Required 1. Why did Jay Batson create a team to address this quality problem, rather than assigning the task to one person? Consider each piece of cost/benefit information reported by man- agement accountant Anna Hamm. Which person on the team is most likely to have con- tributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?) 2. Classify the following amounts into one of the six value-chain business functions.

a. $180.500 cost to develop the new disk drive.

b. $70,000 cost to redesign the connector.

c. $163,998 for warranty repairs on disk drives.

d. $100.221 to rework disk drives identified as defective while still in the factory. 3. This problem illustrates how Quantx can make trade-offs across business functions in the value chain. Which of the six value-chain functions are involved in the trade-offs pro- posed by the quality improvement team? What specific trade-offs do they propose?