Clost of quality) Edwin Engines wants to determine its cost of quality. The company has gathered the following information from records pertaining to August 2006:

Compute the following:

a. Lost profits from selling defective work

b. Total costs of failure C. Total quality cost LO.1

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Defective units Units reworked Defective units returned Appraisal costs Cost per unit for rework Prevention costs Profit per good unit produced and sold Profit per defective unit sold Cost per unit for customer returns Cost of warranty work 6,000 1,200 400 $13,600 $12 $50,000 $60. $40 $10 $5,000