4 Quality Training is $66,000; Quality Planning is $34,000; Design Review is $10,000. Testing is $59,000; Inspection is $51,000; Calibration is 20,000; Factory Scrap is $68,000; Factory Rework is $48,000; Factory Downtime due to poor quality is $4,000; Quality Returns are $56,000; Liability Claims are $24,000; Analysis of Returns & Claims is $20,000; Shipping is $72,000; Advertising is $38,000; Marketing is $26,000. Sales are $6,000,000. Calculate the Cost of Prevention, Appraisal, Internal Failure and External Failure. Calculate the Total Cost of Quality and Ratio to Sales. What should we do?
4 Quality Training is $66,000; Quality Planning is $34,000; Design Review is $10,000. Testing is $59,000; Inspection is $51,000; Calibration is 20,000; Factory Scrap is $68,000; Factory Rework is $48,000; Factory Downtime due to poor quality is $4,000; Quality Returns are $56,000; Liability Claims are $24,000; Analysis of Returns & Claims is $20,000; Shipping is $72,000; Advertising is $38,000; Marketing is $26,000. Sales are $6,000,000. Calculate the Cost of Prevention, Appraisal, Internal Failure and External Failure. Calculate the Total Cost of Quality and Ratio to Sales. What should we do?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![4 Quality Training is $66,000; Quality Planning is $34,000; Design Review is $10,000.
Testing is $59,000; Inspection is $51,000; Calibration is 20,000;
Factory Scrap is $68,000; Factory Rework is $48,000;
Factory Downtime due to poor quality is $4,000;
Quality Returns are $56,000; Liability Claims are $24,000;
Analysis of Returns & Claims is $20,000;
Shipping is $72,000; Advertising is $38,000; Marketing is $26,000.
Sales are $6,000,000.
Calculate the Cost of Prevention, Appraisal, Internal Failure and External Failure.
Calculate the Total Cost of Quality and Ratio to Sales.
What should we do?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea32dba-6d6d-4916-888d-50b846c7bb15%2F8ad3bf07-adc6-44fc-8ce6-3f85725a06eb%2Fzj7kw7g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4 Quality Training is $66,000; Quality Planning is $34,000; Design Review is $10,000.
Testing is $59,000; Inspection is $51,000; Calibration is 20,000;
Factory Scrap is $68,000; Factory Rework is $48,000;
Factory Downtime due to poor quality is $4,000;
Quality Returns are $56,000; Liability Claims are $24,000;
Analysis of Returns & Claims is $20,000;
Shipping is $72,000; Advertising is $38,000; Marketing is $26,000.
Sales are $6,000,000.
Calculate the Cost of Prevention, Appraisal, Internal Failure and External Failure.
Calculate the Total Cost of Quality and Ratio to Sales.
What should we do?
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