Backwoods American, Inc., produces expensive water-repellent, down-lined parkas. The co. implemented a TQM program in 2005. Following are the quality-related accounting data that have been accumulated for the 5-year period after the program's start.

Year
	2006	2007	2008	2009	2010
Quality Costs ($1000s)
Prevention	3.2	10.7	28.3	42.6	50
Appraisal	26.3	29.2	30.6	24.1	19.6
Internal Failure	39.1	51.3	48.4	35.9	32.1
External Failure	118.6	110.5	105.2	91.3	65.2
TQC	187.2	201.7	212.5	193.9	166.9
Accounting Measures ($1000s)
Sales	2700.62	2690.12	705.22	310.22	880.7
Manufacturing Cost	420.9	423.4	424.7	436.1	435.5
Total Failure Cost Ratio	84.24%	80.22%	72.28%	65.60%	58.30%

	Year
	2006	2007	2008	2009	2010
Prevention Cost Ratio	1.71%	5.30%	13.32%	21.97%	29.96%
Appraisal Cost Ratio	14.05%	14.48%	14.40%	12.43%	11.74%

	Year
	2006	2007	2008	2009	2010
Quality Sales Indices	0.069	0.075	0.301	0.625	0.190
Quality Cost Indices	0.445	0.476	0.500	0.445	0.383

• List some examples of each quality-related costs - i.e., of prevention, appraisal, and internal and external failure costs - that might result from the production of the parkas.
• The BA Inc produces 20,000 parkas annually. The quality management program implemented improved average percentage of good parkas produced by 2% each year beginning with 83% good quality parkas in 2005. Only 20% of poor quality parkas can be reworked (and made good). Compute the product yield for each of the 5 years.
• Assuming a rework cost of $12/parka, determine the manufacturing cost per good parka for each of the 5 years. What do these results imply about the co's quality management program?