Clement, Inc., produces cell phone equipment. Amanda Tremont, Clement's president, implemented a quality-improvement program that has now been in operation for 2 years. The cost report shown here has recently been issued.

Semi-Annual COQ Report, Clement, Inc. (in thousands)
	6/30/2016	12/31/2016	6/30/2017	12/31/2017
Prevention costs
Machine maintenance	$400	$400	$360	$230
Supplier training	10	96	48	38
Design reviews	50	198	197	196
Total prevention costs	460	694	605	464
Appraisal costs
Incoming inspections	104	126	85	57
Final testing	337	337	299	205
Total appraisal costs	441	463	384	262
Internal failure costs
Rework	228	205	171	107
Scrap	127	126	66	62
Total internal failure costs	355	331	237	169
External failure costs
Warranty repairs	180	91	71	63
Customer returns	601	521	271	191
Total external failure costs	781	612	342	254
Total quality costs	$2,037	$2,100	$1,568	$1,149
Total revenues	$8,330	$9,100	$9,860	$9,030

1.	For each period, calculate the ratio of each COQ category to revenues and to total quality costs. Begin by calculating the ratio of each COQ category to revenues and to total quality costs for 6/30/2016, then 12/31/2016. (Round your answers to the nearest whole percentage. Total quality costs as a percentage of revenues may not match the sum of each category's percentage due to rounding.)
2.	Based on the results of requirement 1, would you conclude that Clement's quality program has been successful? Prepare a short report to present your case.
3.	Based on the 2015 survey, Amanda Tremont believed that Clement had to improve product quality. In making her case to Clement management, how might Tremont have estimated the opportunity cost of not implementing thequality-improvement program?