Question
1) Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an
1) Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $29,300, whereas no. 172 typically sells for approximately $26,100. The company is very concerned about quality and has provided the following information:
No. 165 | No. 172 | ||||||
Number of machines produced and sold | 130 | 130 | |||||
Warranty costs: | |||||||
Average repair cost per unit | $ | 830 | $ | 280 | |||
Percentage of units needing repair | 60 % | 10% | |||||
Reliability engineering at $80 per hour | 1,530 hours | 1,930 hours | |||||
Rework at AT's manufacturing plant: | |||||||
Average rework cost per unit | $ | 1,830 | $ | 1,565 | |||
Percentage of units needing rework | 25% | 20% | |||||
Manufacturing inspection at $40 per hour | 265 hours | 465 hours | |||||
Transportation costs to customer sites to fix problems | $ | 28,100 | $ | 13,600 | |||
Quality training for employees | $ | 34,300 | $ | 48,600 | |||
Required:
1-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs.
Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) Please answer all the questions marks from the box below
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