1-Pool-Glow, Inc. has developed a new light for lighting swimming pools. After doing market research, it has determined that customers would be willing to pay $140 for this light. Pool-Glow seeks to earn 25% profit on the light. At present, Pool-Glow makes an old style light for $101.25, which sells for $130.

(1.) What must the target cost be in order to earn the 25% profit that the company demands? (2.) If Pool-Glow can adjust its costs to the target cost, the company estimates that it can sell 50,000 lights. What would Pool-Glow's profit be at this point? (3.) How many of the old style lights would have to be sold to reach the same profit?

2-Components of the total cost of quality Explain how it is possible to reduce the total cost of quality by increasing the amount spent on prevention and appraisal activities.