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Classification of Cost of quality and determine the total amount on each category appropriately: Apex ltd has taken many proactive steps on quality improvements and

Classification of Cost of quality and determine the total amount on each category appropriately:

Apex ltd has taken many proactive steps on quality improvements and has the following activities compiled.

1. Expediting

2.Recalls

3. Line Inspection

4. Litigation costs

5. Reporting & recording of defects

6. Storing and disposing waste

7. Procedure verification

8. Training to employees

9. Product testing equipment

10. Warranty repairs

During the last quarter a company had a bad sales and it's budgeted results are as given below:

Product A: sales =2,50,000, PV ratio=50%

Product B: sales =4,00,000, PV ratio=40%

Product C: sales =6,00,000, PV ratio=30%

Overheads-fixed is 5,02,200

Director of the company wants to identify the cause and have a detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same level of sales mix which will ultimately results in eliminating the loss.

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