Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $31,400, whereas no. 172 typically sells for approximately $28,200. The company is very concerned about quality and has provided the following information: No. 165 No. 172 235 Number of machines produced and sold Warranty costs: Average repair cost per unit Percentage of units needing repair $ 970 $ 420 60% 10% Reliability engineering at $185 per hour Rework at AT's manufacturing plant: 1,670 hours 2,035 hours Average rework cost per unit $ 1,970 $ 1,670 Percentage of units needing rework Manufacturing inspection at $40 per hour Transportation costs to customer sites to fix problems Quality training for employees 30% 370 hours 20% 535 hours $30,200 $35,700 $16,400 $51,400 Required: 1. Classify the preceding costs as prevention, appraisal, internal failure, or external failure 2-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales 2-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs 3-a. Using the classifications in requirement (1), compute ATs quality costs for machine no. 172 in dollars and as a percentage of sales 3-b. Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs revenues as a percentage of total quality costs revenues as a percentage of total quality costs 4. Is the company "investing" its quality expenditures differently for the two machines. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Classify the preceding costs as prevention, appraisal, internal failure, or external failure Warranty costs Reliability engineering Rework at AT's manufacturing plant Manufacturing inspection Transportation costs to customer sites Quality training for employees Req 1 Req 2A> Req 1-Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 165 Dollars Percentage of Sales Prevention cost Total Appraisal cost: Internal failure cost: External failure cost Total Total quality costs Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 165 Percentage of Total Dollars Quality Costs Prevention Appraisal Internal failure External failure Total Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues. (Round "Percentage of Sales" to 2 decimal places.) No. 172 Dollars Percentage of Sales Prevention cost: Total Appraisal cost: Internal failure cost External failure cost: Total Total quality costs Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Using the classifications in requirement (1), compute AT's calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of Total Quality Costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) No. 172 Percentage of Dollars Total Quality Costs Prevention Appraisal Internal failure External failure Total Req 1 Req 2A Req 2B Req 3A Req 3B Req 4 Is the company "investing" its quality expenditures differently for the two machines Yes ONo
