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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 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.)

No. 165
Dollars Percentage of Sales
Prevention cost:
Total $0 %
Appraisal cost: %
Internal failure cost: %
External failure cost:
Total $0 %
Total quality costs $0 0.00 %

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.)

No. 165
Dollars Percentage of Total Quality Costs
Prevention %
Appraisal %
Internal failure %
External failure %
Total $0

  • 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 $0 %
Appraisal cost: %
Internal failure cost: %
External failure cost:
Total $0 %
Total quality costs $0 0.00

%

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.)

No. 172
Dollars Percentage of Total Quality Costs
Prevention %
Appraisal %
Internal failure %
External failure %
Total $0

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