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 $29,800, whereas no. 172 typically sells for approximately $27,300. The company is very concerned about quality and has provided the following information:

	No. 165			No. 172
Number of machines produced and sold		140			190
Warranty costs:
Average repair cost per unit	$	890		$	330
Percentage of units needing repair		70	%		10	%
Reliability engineering at $130 per hour		1,590	hours		1,990	hours
Rework at AT's manufacturing plant:
Average rework cost per unit	$	1,880		$	1,590
Percentage of units needing rework		40	%		25	%
Manufacturing inspection at $60 per hour		290	hours		490	hours
Transportation costs to customer sites to fix problems	$	29,300		$	14,600
Quality training for employees	$	34,600		$	49,600

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 revenues.

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
Sales Revenue:
Prevention Cost:
Reliability Engineering:
Quality Training:
Total
Appraisal Cost:
Internal Failure Cost:
External Failure Cost:
Warranty Costs:
Transportation costs to customer sites:
Total:
Total quality costs:

2-b. 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.

No. 165

	Dollars	Percentage of Total Quality Costs
Prevention:
Appraisal:
Internal Failure:
External Failure:
Total:

3-a. Using the classifications in requirement (1), compute AT's quality costs for machine no. 172 in dollars and as a percentage of sales revenues.

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.)

	Dollars	Percentage of Sales
Sales Revenue:
Prevention Costs:
Reliability Engineering:
Quality Training:	49,600
Total:	$49,600
Appraisal Cost:
Internal Failure Cost:
External Failure Cost:
Warranty Cost:
Transportation costs to customer sites:
Total:
Total quality Costs:

3-b. 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.

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.)

	Dollars	Percentage of Total Quality Costs
Prevention
Appraisal
Internal Failure
External Failure
Total