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Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an
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 $29,900, whereas no. 172 typically sells for approximately $27,400. The company is very concerned about quality and has provided the following information: Number of machines produced and sold Warranty contai Average repair cost per unit Percentage of units needing repair Reliability engineering at $140 per hour Rework at AT's manufacturing plants. Average rework cost per unit Percentage of units needing reworki No. 165 160 So. 172 195 900 $ 340 75% 1,595 hours 10% 1,990 hours 201 490 hours $1,890 $ 1,595 30% 295 hours $29,300 $14,800 $49,800 Manufacturing inspection at $45 per hour nces Transportation costs to customer sites to fix problems Quality training for employees $34,800 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 revenues. 2-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. 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. 3-b. Using the classifications in requirement 1, compute AT's prevention, appraisal, internal failure, and external failure costs 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 Reg 28 Req 3A Req 381 Req 4
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