Hello I need help with with parts C, D, E. I was able to complete the first two sections but cannot seem to figure out the last three.

Barry's Burger Shack Barry's Burger Shack operates a single location at Suffolk selling burgers, fries and sodas to faculty and students. Revenues for 2016 were $90,000 with profits of $2,250; industry benchmarks suggest profit margins should be close to 10% of revenue. Barry had noticed an increasing number of complaints from customers over the quality of his burgers and the messiness of the soda self service area and has hired you to estimate the cost of quality for his burger business. Your analysis identified the following broad categories of quality costs in 2016: 1 One in 30 customers returned their burgers for a replacement due to burger being too greasy, being served too cool, or served with wrong ingredients; cost to replace was ~$1,600 per year 2 Approximately 5% of burgers have to be scrapped during preparation process at an estimated cost of about $1,200 per year; fries scrap cost about $600 per year 3 Barry uses a mystery shopper service to evaluate employee performance at an annual cost of $600 per year 4 Barry purchased a special grille last year for $8,000 to reduce grease in burgers and to ensure more consistent cooking temperature; Grille has an expected life of 5 years (SL depr.) 5 Barry spent $400 on training his cooking and serving staff 6 A customer sued Barry after finding a bandaid in her burger; Barry settled for $2000. 7 The self service soda area used 6,000 ounces of syrup at a cost of $0.25 per ounce for 5,000 paid sodas; each soda should use 1 ounce of syrup but the excess was spilled 8 Barry, whose annual salary with benefits was $18,000, spent approximately 15% of his time inspecting burger production operations A Required: Classify the above costs into the 4 categories of cost of quality; calculate the % of revenue for each category and for total cost of quality. What recommendations would you make to Barry based on your analysis to help him improve profitability? Internal Prevention Appraisal Failure External Failure 1 Returned burgers $ - ### $ 1,600 2 Scrapped burgers $ - ### $ 1,800 $ - 3 Mystery shopper $ - $ 600 $ - $ - 4 Special grille (depr. = $8,000/5) $ 1,600 $ - ### $ - 5 Training staff $ 400 $ - ### $ - 6 Bandaid settlement $ - ### $ - $ 2,000 7 Soda spllage (1,000 oz. * $0.25) $ - ### $ 250 $ - 8 Barry inspection (15%*$18,000) $ - $ 2,700 $ - $ - $ 3,300 $ 2,050 $ 3,600 Total Cost of Quality % Revenue $ 2,000 $ 90,000 2.2% 3.7% 2.3% 4.0% qattachments_7cda54cb68b86dd862db3d363f1a9c37deadd274.xlsx B Barry was thrilled with your initial analysis and, in particular, with your recommendation to improve the cooking process in order to reduce internal failure cost. You observe the cooking process for a few days and identify the following process steps as well as related material costs, labor time, and scrap % at each step: Material Labor Units Labor $/hr Step Process Description $/unit Mins/unit % scrap Started $9.00 1 Remove/thaw burgers $ 0.75 0.10 0.0% 18934 $0.015 2 If uncooked >24hrs, scrap $ - 0.20 1.0% 18934 $0.030 3 Cook on grille $ 0.10 1.50 0.0% 18744 $0.225 4 if overcooked, scrap $ - 0.30 1.5% 18744 $0.045 5 Assemble burger $ 0.30 0.90 0.0% 18462 $0.135 6 Store in heating unit $ - 0.10 0.0% 18462 $0.015 7 If >10 mins in heater, scrap $ - 0.20 2.5% 18462 $0.030 $ 1.15 3.30 5.0% Totals C $ $0.495 Required: Complete the chart above to compute the scrap cost per unit. Assuming Barry sells 18,000 burgers per year, what is his annual cost of scrap? What would you recommend? Next, you focus on reducing external failure cost. You analyze the cost of returned burgers and determine 70% of returns are due to wrong ingredients. You note Barry is using paper slips to send orders to the grille so you do some research and find a point of sale terminal that shows customer what they are ordering and requires grille worker to confirm ingredients before wrapping burger. The new terminal will cost $3,000 with an expected life of 5 years (use SL depr.), but could save 80% of current returns due to wrong ingredients. D Required: Compute NPV for the new terminal with 40% tax rate and Barry's cost of capital = Year 0 E Year 1 Year 2 Year 3 Year 4 Year 5 Initial Cost Projected savings SL Depreciation Pre-tax profit increase $ less taxes at 40% - $ - - $ - $ - Add back depreciation $ - $ - $ $ - $ - $ $ 0 Net Present Value $ 0 - $ - After tax profit increase Cash flow $ - $ - - $ $ - - $ - - $ - $ - - $ - $ - qattachments_7cda54cb68b86dd862db3d363f1a9c37deadd274.xlsx es and sodas to y had noticed urgers and the messiness of r his burger business. urger being too greasy, e was ~$1,600 per year rocess at an ce at an annual cost n burgers and to e of 5 years (SL depr.) ed for $2000. 25 per ounce for ss was spilled ately 15% of his time alculate the % of mmendations ove profitability? Total $ 1,600 $ 1,800 $ 600 $ 1,600 $ 400 $ 2,000 $ 250 $ 2,700 $ 10,950 12.2% qattachments_7cda54cb68b86dd862db3d363f1a9c37deadd274.xlsx mendation to improve the king process for a few days and me, and scrap % at each step: Cumul. Scrap Cost Cost $0.765 $ - $0.795 $ 151 $1.120 $ - $1.165 $ 328 $1.600 $ - $1.615 $ - $1.645 $ 759 $1.645 $ 1,237 uming Barry sells ould you recommend? urned burgers and determine ips to send orders to the grille er what they are ordering and terminal will cost $3,000 with rns due to wrong ingredients. ost of capital = 10% qattachments_7cda54cb68b86dd862db3d363f1a9c37deadd274.xlsx