00 8 1.1 points Problem 8-39 Quality Costs: Identification and Analysis (LO 8-7) Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,000, whereas no. 172 typically sells for approximately $27,500. The company is very concerned about quality and has provided the following Information: 8 03:46:18 eBook References Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair Reliability engineering at $150 per hour Rework at AT's manufacturing plant: Average rework cost per unit Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problems Quality training for employees Required: No. 165 160 No. 172 200 $ 900 65% 1,600 hours $ 1,900 350 10% 2,000 hours $ 1,600 20% 25% 300 hours $29,500 $35,000 500 hours $15,000 $50,000 1. Classify the preceding costs as prevention, appraisal, Internal failure, or external failure. 2-a. Using the classifications in requirement 1, compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. 2-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, Internal failure, and external failure costs as a percentage of total quality costs. 3-a. Using the classifications in requirement 1, compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. 3-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, Internal failure, and external failure costs as a percentage of total quality costs. 4. Is the company "Investing" its quality expenditures differently for the two machines?