P19-5B Problem 19-4B provided both quantitative and qualitative information about Pameon's quality project, and asked you to perform a quantitative analysis to help Pameon's managers decide whether to embark on the quality project. Now consider some qualitative factors in Pameon's quality improvement project. Required 1. Why did Jon Vaucluse create a team to address this quality problem, rather than assign- ing the task to one person? Consider each piece of cost/benefit information reported by management accountant Lily Peugot. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?) 2. Classify the following costs into one of the six value-chain business functions:

a. $52,500 cost to redesign the watch.

b. $80,000 cost to develop a completely new watch mechanism.

c. $47.450 to rework watches identified as defective while still in the factory.

d. $101,440 to make warranty repairs on watches returned by customers. 3. The Pameon problem illustrates how managers make trade-offs across different business functions in the value chain. Which of the six value-chain functions are involved in the trade-offs proposed by the quality improvement team? What specific trade-offs do they propose?