Use the Excel Pareto template to investigate the quality losses in a paper mill shown below. CategoryAnnual Loss ($)Downtime40,000 Testing costs21,000 Rejected paper480,000 Odd lot86,000 Excess inspection32,000 Customer complaints134,000 High material costs59,000 The data has been sorted for your convenience. Calculate the percent of total complaints for each category of errors. Round your answers to two decimal places. NameAmountPercent of TotalRejected paper$480,000 %Customer complaints$134,000 %Odd lot$86,000 %High material costs$59,000 %Downtime$40,000 %Excess inspection$32,000 %Testing costs$21,000 % The correct Pareto diagram is .A. B. C. D. A.B.Frequency (in thousands of dollars)700-600500400300200100Frequency (in thousands of dollars)700-600--500-400300Rejected Customer Odd lot Highmaterial Downtime Excesspaper complaintscosts200100-Testinginspection costsTestingRejected Customer Odd lot Highmaterial Downtime Excesspaper complaintsinspection costscosts C.D.elect-Frequency (in thousands of dollars)700-600-500400300200100Frequency (in thousands of dollars)700-600500-400-300-200100Rejected Customer Odd lot Highmaterial Downtime Excesspaper complaintscostsTestinginspection costsRejected Customer Odd lot Highmaterial Downtime Excesspaper complaintscostsTestinginspection costsaccount for the majority of customer complaints. If two of these root causes are fixed, -Select-of customer complaints will be solved.

Pareto diagram is a bar graph created in decreasing order. The vertical side of the chart reflects…

Answered: Use the Excel Pareto template to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the Excel Pareto template to investigate the quality losses in a paper mill shown below.

Category	Annual Loss ($)
Downtime	40,000
Testing costs	21,000
Rejected paper	480,000
Odd lot	86,000
Excess inspection	32,000
Customer complaints	134,000
High material costs	59,000

The data has been sorted for your convenience. Calculate the percent of total complaints for each category of errors. Round your answers to two decimal places.

Name	Amount	Percent of Total
Rejected paper	$480,000	%
Customer complaints	$134,000	%
Odd lot	$86,000	%
High material costs	$59,000	%
Downtime	$40,000	%
Excess inspection	$32,000	%
Testing costs	$21,000	%

The correct Pareto diagram is .

A.
B.
C.
D.

A.
B.
Frequency (in thousands of dollars)
700
-600
500
400
300
200
100
Frequency (in thousands of dollars)
700
-600-
-500-
400
300
Rejected Customer Odd lot Highmaterial Downtime Excess
paper complaints
costs
200
100-
Testing
inspection costs
Testing
Rejected Customer Odd lot Highmaterial Downtime Excess
paper complaints
inspection costs
costs

C.
D.
elect-
Frequency (in thousands of dollars)
700
-600
-500
400
300
200
100
Frequency (in thousands of dollars)
700
-600
500
-400-
300
-200
100
Rejected Customer Odd lot Highmaterial Downtime Excess
paper complaints
costs
Testing
inspection costs
Rejected Customer Odd lot Highmaterial Downtime Excess
paper complaints
costs
Testing
inspection costs
account for the majority of customer complaints. If two of these root causes are fixed, -Select-
of customer complaints will be solved.

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