Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars):

	2022	2023
Sales	$ 15,300	$ 19,300
Materials inspection	230	53
In-process (production) inspection	153	118
Finished product inspection	180	63
Preventive equipment maintenance	13	53
Scrap (net)	430	230
Warranty repairs	630	380
Product design engineering	143	200
Vendor certification	27	53
Direct costs of returned goods	205	73
Training of factory workers	33	133
Product testingequipment maintenance	53	53
Product testing labor	140	83
Field repairs	63	33
Rework before shipment	170	193
Product-liability settlement	290	53
Emergency repair and maintenance	130	68

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2022 to 2023;

b. Total COQ in 2023 expressed as a percentage of 2022 sales dollars;

c. Percentage change in total prevention costs, 2022 to 2023;

d. Percentage change in total appraisal costs, 2022 to 2023;

e. Percentage change in total internal failure costs, 2022 to 2023;

f. Percentage change in total external failure costs, 2022 to 2023.