Norris Company implemented a quality improvement program and tracked the following for the 5 years:

By cost category as a percentage of sales for the same period of time:

Required:
1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph.
2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?

Transcribed Image Text:

20X1 20X2 20X3 20X4 20X5 ality Costs $880,000 840,000 765,000 700,000 594,000 Actual Sales $4,000,000 4,200,000 4,500,000 5,000,000 5,400,000 Costs as a Percentage of Sales 22.00% 20.00 17.00 14.00 11.00 1 Appraisal 2.50% 3.25 5.00 3.50 2.25 Internal Failure External Failure 11 . 50% 10.00 6.25 5.00 3.50 Prevention 20X1 20X2 20X3 20X4 20X5 1 .50% 2.75 3.00 3.50 3.75 650% 4.00 2.75 2.00 1.50