One of Camely Chemicals’ facilities manufactures a hazardous chemical. The following represents the financial information from the plant for the most recent two years:

Required

a. Classify these items into prevention (P), appraisal (A), internal failure (IF), or external failure (EF) costs.

b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2.

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Sales revenue... Costs Redesign manufacturing process.. Discard defective batches.. Clean up toxic spills. Warranty claims... Product liability claims Rework... Preventive maintenance Batch testing... Training on equipment.. .. Year 1 $700,000 $ 2,800 3,700 25,000 12,900 20,100 7,200 11,400 30.200 19,000 Year 2 $1,140,000 $ 5,500 6,500 31,500 26,400 23,100 14,400 22,800 26.400 29,700