Question
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
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 $29,400, whereas no. 172 typically sells for approximately $27,200. The company is very concerned about quality and has provided the following information:
No. 165 | No. 172 | ||||||
Number of machines produced and sold | 150 | 170 | |||||
Warranty costs: | |||||||
Average repair cost per unit | $ | 890 | $ | 320 | |||
Percentage of units needing repair | 60 | % | 10 | % | |||
Reliability engineering at $135 per hour | 1,570 | hours | 1,970 | hours | |||
Rework at AT's manufacturing plant: | |||||||
Average rework cost per unit | $ | 1,870 | $ | 1,585 | |||
Percentage of units needing rework | 25 | % | 20 | % | |||
Manufacturing inspection at $40 per hour | 285 | hours | 470 | hours | |||
Transportation costs to customer sites to fix problems | $ | 29,200 | $ | 14,400 | |||
Quality training for employees | $ | 34,700 | $ | 49,400 | |||
- 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.)
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Complete this question by entering your answers in the tabs below.
- 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.)
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- 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.)
|
Complete this question by entering your answers in the tabs below.
- 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.)
|
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