The controller of Golden Company has computed quality costs as a percentage of sales for the past five years (1997 was the first year the company implemented a quality-improvement program). This information follows:

Prevention Appraisal Internal Failure External Failure Total Is 2% 3% 8% 12% 25%

1998 3 4 Wh 10 24 1999 4 5 6 7 22 2000 5 4 3 6 18 2001 6 3 1 Z 2 Required:

1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality-improvement program.

2. Prepare a graph that shows the trend for each quality cost category. What does the graph indicate about the success of the quality-improvement program? Does this graph supply more insight than the total cost trend graph? What does the graph reveal about the distribution of quality costs in 1997? in 2001?