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 2019 and 2020 (in thousands of dollars):

	2019			2020
Sales	$	16,700		$	20,700
Materials inspection		370			67
In-process (production) inspection		167			132
Finished product inspection		320			77
Preventive equipment maintenance		27			67
Scrap (net)		570			370
Warranty repairs		770			520
Product design engineering		157			340
Vendor certification		17			67
Direct costs of returned goods		345			87
Training of factory workers		47			147
Product testingequipment maintenance		67			67
Product testing labor		280			97
Field repairs		77			47
Rework before shipment		310			207
Product-liability settlement		430			67
Emergency repair and maintenance		270			82

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 2019 to 2020;

b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;

c. Percentage change in total prevention costs, 2019 to 2020;

d. Percentage change in total appraisal costs, 2019 to 2020;

e. Percentage change in total internal failure costs, 2019 to 2020;

f. Percentage change in total external failure costs, 2019 to 2020.

Reg 1 and 2 Reg 3 Classify the cost items in the table into cost-of-quality (COD) categories. Calculate the ratio of each COQ category to revenues in each of the 2 years. (Enter amounts in thousands, not in whole dollar. Round your "Percentage" answers to 2 decimal places.) 2019 % of Sales 2020 % of Sales Amount Amount Cost of quality Prevention costs: 96 Total prevention costs Appraisal costs: 96 96 Total appraisal costs Internal failure costs: 96 96 Total internal failure costs External failure costs: Total external failure costs Total cost of quality (COQ) 96 96 96 96 Req 1 and 2 Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Calculate the percentage change in each COQ category and total COQ and comment on the results: (Round your answers to 2 decimal places.) % % 3a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020 3b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars 3c. Percentage change in total prevention costs, 2019 to 2020 3d. Percentage change in total appraisal costs, 2019 to 2020 3e. Percentage change in total internal failure costs, 2019 to 2020 3f. Percentage change in total external failure costs, 2019 to 2020 % % % %