Question 4 (17 marks) Plastic Tech produces two extrusion machines that are very popular with plastics manufacturers: model ABC and model XYZ. Model ABC sells for $60,000 and model XYZ sells for $55,000. PlasticTech, is concerned about the differing performance of the two machines in relation to quality, and has collected the following information: Model ABC 80 Model XYZ 100 $1,200 70% 1,600 hours $400 10% 2,000 hours Number of (units) produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repairs Quality reliability engineering at $150 per hour Rework at Plastic Tech's factory: Average rework cost per unit Percentage of units needing rework Manufacturing inspection at $50 per hour Transportation costs to customer sites to fix problems Quality training for employees $1,900 35% 300 hours $29,500 $35,000 $1,600 25% 500 hours $15,000 $50,000 Required: 1. Prepare a Costs of Quality (COQ) report for model ABC. (4 marks) 2. Prepare a similar Costs of Quality (COQ) report for model XYZ. (4 marks) 3. Discuss in detail the two reports. Is Plastic Tech 'investing' its quality expenditures differently for the two machines? Explain. (9 marks)