49. (10 points) Katz Corp. has the following information related to costs of quality. Units produced and sold % units reworked % of units returned by customers Testing & inspection of equipment Breakdown equipment repair Product redesign Cost of rework units Cost of customer returns Maintenance/Inspection cost per hour Product redesign cost per hour Amount / Rate 74,700 6.0% 2.5% 30 hours 75 hours 400 hours $7 per unit $12 per unit $35 per hour $11 per hour a. Calculate the Cost of Quality (COQ) for Katz Corp. and classify quality costs as Prevention, Appraisal, Internal Failure, External Failure and provide the Total Cost of Quality. b. Based on your analysis what is the biggest issue or concern with the quality program at Katz Corp.?