Changes in Quality Costs. Volkmann Enterprises has reported the following data for 1997:

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Comment on the following thoughts:
A. Prevention and appraisal spending has eliminated nearly all customer quality problems.
B. More should be spent on prevention to even the spending among the three internal cost categories.
C. A goal of reducing costs in each category by 10 percent (or by some specific dollar amount) should be set in next year's profit plan.
D. A good job has been done if the sum of the four costs as a percentage of sales declines somewhat.

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Prevention costs $374,000 Appraisal costs 615,600 Internal failure costs 651,400 External failure costs 27,100