B bed Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the company's cell phones low in product quality. Shocked by this result. Jorge Gomez, Mercury's president, set up a task force to implement a formal quality improvement program. Included on this task force were representatives from the Engineering, Marketing, Customer Service. Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below: Mercury, Incorporated Quality Cost Report (in thousands) Prevention costs: Machine maintenance Training suppliers Quality circles Total prevention cost Appraisal costs: Incoming inspection. Final testing Last Year This Year $ 75 $125 0 15 0 25 75 165 25 45 85 95 ces Total appraisal cost 110 140 Internal failure costs: Rework 55 135 Scrap 45. 75 Total internal failure cost 100 210 External failure costs: Warranty repairs 95 35 Customer returns 325 85 Total external failure cost 420 120 Total quality cost $ 705 $ 635 Total production cost $ 4,450 $ 5,050 Che- 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. Note: 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) < Prev 3 of 6 Next 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. Note: 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 Prevention costs: Percentage of Amount Total Production Cost Percentage of Total Quality Amount Cost This Year Percentage of Total Production Cost Percentage of Total Quality Cost Machine maintenance $ 75 $ 125 Training suppliers Quality circles Total prevention costs Appraisal costs: 0 15 0 25 75 0.0 0.0 165 0.0 0.0 Incoming inspection 25 45 Final testing 85 95 Total appraisal costs 110 0.0 0.0 140 0.0 0.0 Internal failure costs: Rework 55 135 75 Scrap 45 Total internal failure costs 100 0.0 0.0 210 0.0 0.0 External failure costs: 35 Warranty repairs 95 85 Customer returns 325 Total external failure costs 420 0.0 0.0 120 0.0 0.0 Total quality cost $ 705 0.0 0.0 $ 635 0.0 0.0 $ Total production cost $ 4,450 5,050 < Prev 3 of 6 Next >