Lemmons Company implemented a quality improvement program and tracked the following for the five years:

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?
3. What if management would like to have the trend in relative distribution of quality costs? Express this as a bar graph and comment on its significance.LO1

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Quality Actual Costs as a Costs Sales Percentage of Sales 2007 $1,250,000 $5,000,000 25.00% 2008 1,237,500 5,500,000 22.50 2009 1,125,000 6,000,000 18.75 2010 1,085,000 6,200,000 17.50 2011 1,000,000 8,000,000 12.50 Prevention Appraisal By cost category as a percentage of sales for the same period of time: External Failure Internal Failure 2007 2.50% 2.50% 7.50% 12.50% 2008 3.75 3.00 5.00 10.75 2009 3.75 3.75 3.75 7.50 2010 5.00 3.75 3.13 5.63 2011 6.38 3.00 2.50 1.90