1. Chapter 4, problem 1. This problem is based on one of the topics, Costs of Quality, in chapter four of your class textbook - Managing Quality: Integrating the Supply Chain, 6th Edition by S. Thomas Foster. An example is solved for you in the text. Study the chapter and solve the following problems. Statement of the problem The Colorado Manufacturing Company of Boulder, CO has gathered the following quality-related costs. You are hired as a consultant to evaluate these costs and to make recommendations to management. Annual Quality Costs Failure Costs Defective Products Engineered Scrap Non-engineered Scrap Consumer Adjustments Downgrading Products $ 4,234 $ 21,265 $ 224,123 S 125,654 $2,125,328 Lost Goodwill Not evaluated Customer Policy Changes Not evaluated Total $ 24,138 Appraisal Costs Receiving Inspection Line 1 Inspection Line 2 Inspection Spot Checking $ 7,256 $ 8,543 $ 2,766 Total $ 25,500 Prevention Costs Quality Training Process Engineering Corporate Plant Product Redesign $ 132,678 S 44,124 $ 10,422 Total a. Compute the ratio of prevention and appraisal costs to failure costs. b. Identify strategies for reducing failure costs