38. (Cost of quality) Mathes Company wants to determine its cost of quality. The company has gathered the following information from records pertaining to August 2000:

Defective units 2,500 Units reworked 600 Defective units returned 200 Appraisal costs $6,800 Cost per unit for rework $6 Prevention costs $25,000 Profit per good unit produced and sold $30 Profit per defective unit sold $20 Cost per unit for customer returns $5 Cost of warranty work $2,500 Compute the following:

a. Lost profits from selling defective work

b. Total costs of failure

c. Total quality cost