(Clost of quality) Dorothy’s Sandal Works has gathered the following data on its quality costs for 2006 and 2007:

a. Compute the percentage change in the two quality cost categories from 2006 to 2007.

b. Write a brief explanation for the pattern of change in the two cate-
gories. LO.1

Transcribed Image Text:

Defect Prevention Costs 2006 2007 Quality training $ 9,000 $10,500 Quality technology 7,500 10,000 Quality production design 4,000 9,000 External Failure Costs Warranty handling $15,000 $10,000 Customer reimbursements 11,000 7,200 Customer returns handling 7,000 4,000