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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

No. 172
Dollars Percentage of Total Quality Costs
Prevention ? ? %
Appraisal ? ? %
Internal failure ? ? %
External failure ? ? %
Total

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