Please help me with problem 2 & 3. I have filled in the table for problem 1 already.

Problem 14.30 (Algorithmic)

Quality Cost Report,

Taguchi Loss Function Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 2015, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related:

2015

Sales (621,000 units @ $100) $62,100,000

Retesting 1,925,100

Rework 2,359,800

Vendor certification 807,300

Consumer complaints 1,552,500

Warranty 2,173,500 T

est labor 1,738,800

Inspection labor 1,676,700

Design reviews 310,500

1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.78% would be entered as "5.8".

	quality costs	total quality costs	percentage sales
prevention costs
vendor certificate	807300
design review	310500	1117800	1.8%
appraisal costs:
test labor	1738800
inspection labor	1676700	3415500	5.5%
internal failure costs:
retesting	1925100
rework	2359800	4284900	6.9%
external failure costs:
consumer complaints	1552500
warranty	2173500	3726000	6.0%
total quality costs		12544200	20.2%

2. Calculate the relative distribution percentages for each quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.789% would be entered as "5.8".

Prevention		%
Appraisal		%
Internal failure		%
External failure		%

3. Using the Taguchi loss function, an average loss per unit is computed to be $14 per unit. What are the hidden costs of external failure? $