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 the quality and has provided the following information:

	No. 165			No. 172
Number of machines produced and sold		230			235
Warranty costs:
Average repair cost per unit	$	970		$	420
Percentage of units needing repair		60	%		10	%
Reliability engineering at $185 per hour		1,670	hours		2,035	hours
Rework at AT's manufacturing plant:
Average rework cost per unit	$	1,970		$	1,670
Percentage of units needing rework		30	%		20	%
Manufacturing inspection at $40 per hour		370	hours		535	hours
Transportation costs to customer sites to fix problems	$	30,200		$	16,400
Quality training for employees	$	35,700		$	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 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?