Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars):

	2022	2023
Sales	$ 16,200	$ 20,200
Materials inspection	320	62
In-process (production) inspection	162	127
Finished product inspection	270	72
Preventive equipment maintenance	22	62
Scrap (net)	520	320
Warranty repairs	720	470
Product design engineering	152	290
Vendor certification	12	62
Direct costs of returned goods	295	82
Training of factory workers	42	142
Product testingequipment maintenance	62	62
Product testing labor	230	92
Field repairs	72	42
Rework before shipment	260	202
Product-liability settlement	380	62
Emergency repair and maintenance	220	77

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2022 to 2023;

b. Total COQ in 2023 expressed as a percentage of 2022 sales dollars;

c. Percentage change in total prevention costs, 2022 to 2023;

d. Percentage change in total appraisal costs, 2022 to 2023;

e. Percentage change in total internal failure costs, 2022 to 2023;

f. Percentage change in total external failure costs, 2022 to 2023.