1. During 2015 and 2016, Willy Company reported sales of $12,000,000 per year. Willy listed the...

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1. During 2015 and 2016, Willy Company reported sales of $12,000,000 per year. Willy listed the following quality costs for the past two years. Assume that all changes in the quality costs are due to a quality improvement program. 2015 ($) 2016 ($) Design review 300,000 600,000 Recalls 400,000 200,000 Re inspection 200,000 100,000 120,000 80,000 Materials inspection Quality training 80,000 200,000 Process acceptance 100,000 Scrap 290,000 70,000 Lost sales (estimated) 600,000 400,000 Product inspection 100,000 60,000 Returned goods 310,000 190,000 Total 2,400,000 2,000,000 Required: Prepare a quality cost report for each year. What does this report tell management? 1. During 2015 and 2016, Willy Company reported sales of $12,000,000 per year. Willy listed the following quality costs for the past two years. Assume that all changes in the quality costs are due to a quality improvement program. 2015 ($) 2016 ($) Design review 300,000 600,000 Recalls 400,000 200,000 Re inspection 200,000 100,000 120,000 80,000 Materials inspection Quality training 80,000 200,000 Process acceptance 100,000 Scrap 290,000 70,000 Lost sales (estimated) 600,000 400,000 Product inspection 100,000 60,000 Returned goods 310,000 190,000 Total 2,400,000 2,000,000 Required: Prepare a quality cost report for each year. What does this report tell management?

Answer rating: 100% (QA)

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