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10-7,8) 10-52. Costs of Quality Nuke-It-Now manufactures microwave ovens. The following represents the financial informatie from one of its manufacturing plants for two years. anagement
10-7,8) 10-52. Costs of Quality Nuke-It-Now manufactures microwave ovens. The following represents the financial informatie from one of its manufacturing plants for two years. anagement Year 1 ... Year 2 Sales revenue Costs $3,500,000 $3,800,000 Redesign process. Discard defective units.. Training on equipment. Warranty claims..... Contract cancellations. Rework ..... Preventive maintenance Product liability claims. Final inspection... $ 29,000 37,000 250,000 129,000 201,000 72,000 114,000 302,000 190,000 $ 37,000 43,000 210,000 176,000 154,000 96,000 152.000 176,000 198,000 .. ..... Required Classify these items into prevention (P), appraisal (A), internal failure (IF), or external failure 4. (EF) costs. 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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