Compute a sales dollar base index for Midwest Sales, Inc., to analyze the following quality cost information,
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Question:
Compute a sales dollar base index for Midwest Sales, Inc., to analyze the following quality cost information, and prepare memo to management.
Quarterly Costs (in thousands of dollars)
1 2 3 4
Total sales4,1204,2064,454 4,106
External failure280.8208.2142.8 128.6
Internal failure468.2372.4284.4 166.4
Appraisal194.2227.7274.4 266.2
Prevention28.429.250.2 80.2
Total quality costs971.6837.5751.8 641.4
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