As they were reviewing the report, Elsoe asked Tran what he now thought of the quality improvement program. Tran replied. "I'm relieved that the new quality improvement program hasn't hurt our bonuses, but the program has increased the workload in the Production Department. It is true that customer returns are way down, but the cell phones that were returned by customers to retail outlets were rarely sent back to us for rework." Required: 1. Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. (Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).) Mercury, Incorporated Quality Cost Report (in thousands) Last Year Percentage of Amount Total Production Percentage of Total Quality Amount Cost Cost This Year Percentage of Total Production Cost Prevention costs: Machine maintenance $ 300 Training suppliers 8 Quality circles 22 Total prevention costs 330 $ 115 20 75 210 Appraisal costs: Incoming inspection 55 28 Final testing 170 94 Total appraisal costs 225 122 Internal failure costs: Rework 140 68 Scrap 60 65 Total internal failure costs 200 133 External failure costs: Warranty repairs 71 29 Customer returns 270 98 Total external failure costs 341 127 Total quality cost $ 1,096 $ 592 Total production cost $ 4,200 $ 4,600 Percentage of Total Quality Cost