Question: Please use the Table 1 to answer the following questions: Table 1: The Manufacturer has gathered the following quality-related costs data: Annual Quality Costs Failure
Please use the Table 1 to answer the following questions:
| Table 1: The Manufacturer has gathered the following quality-related costs data: | |
| Annual Quality Costs | |
|
| Failure Costs Defective Products before sales $ 4,234 Engineered Scrap $ 21,265 Non-engineered Scrap $ 23,123 Product return from customers $ 15,654 Costs of complaint investigations $ 10,000 Lost Goodwill Not evaluated Customer satisfaction Not evaluated Total $ 74,276 |
|
| Appraisal Costs Receiving Inspection $ 10,155 Line 1 Inspection $ 9,225 Line 2 Inspection $ 7,455 Spot Checking $ 8,766 Total $ 35,601
|
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| Prevention Costs Employee Training $ 25,500 Process Engineering Corporate $ 132,678 Factory $ 44,124 Product Redesign $ 10,422 Total $ 212,724
|
Compute the ratio of prevention and appraisal costs to failure cost
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