(A) Clearwear Sdn. Bhd. manufactures plastic lenses for sunglasses in Malaysia. One of its top-selling lines is the XRP Lens, which has a scratch-resistant polarised surface. Earlier this year, a Taiwanese company entered the market offering a similar lens at a price 20 per cent below the XRP price of RM3 per unit. Clearwear's parent company has a target profit margin of 40 per cent (on sales) on each of its products. Required: () What target cost would have to be set for the XRP to remain competitive and meet the requirements of Clearwear's parent company? (4 marks) (i) Explain how Clearwear could apply the principles of life cycle management to achieve this cost. (6 marks) () Explain how value engineering could help in this process (2 marks) (B) The following costs were incurred by Kelly Fabrications Sdn Bhd to maintain the quality of its products during April: Operating an X-ray machine to detect faulty welds, RM5,400 0 Repairs to faulty products returned by customers, RM12,000 1 Cost of rewelding faulty joints discovered during processing, RM3,800 0 Cost of sending machine operators to a three-week quality training program, RM11,600 . Cost of recalling faulty products, RM20,000 Legal fees related to product recall, RM3,600 1 Product inspection into finished goods warehouse, RM3,400 Cost to confirm a supplier's quality accreditation, RM600 O Cost of faulty goods that were scrapped, RM 16,800. Required: () Prepare a quality cost report by quality cost category. Include in the quality report, the cost of each individual item, the total cost per category and percentage of total quality costs per category. (9 marks) (c) Comment on the relative proportions of each categories of quality costs. (4 marks)