Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Activity Cost Quality Cost Classification Value Added/ Non-Value Added Classification $34,200 94,400 73,600 Quality Control Activities Billing error correction Cable signal testing Reinstalling service (installed incorrectly the first time) Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable 23,600 22,200 126,400 Replacing old technology signal switches with higher quality switches 144,400 41,100 Responding to customer home repair requests Training employees 30,100 Total activity cost 5590,000 b. Prepare a cost of quality report. Assume that sales are 52.360,000. If required, round percentages to one decimal place. b. Prepare a cost of quality report. Assume that sales are $2,360,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Percent of Total Percent of Quality Cost Quality Cost Total Sales Quality Cost Classification Prevention Da Do Appraisal Internal failure External failure o DO Total % old c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value Added/Non-Value Added Activity Analysis Category Amount Percent Value-added % Non-value-added % Total 90 d. What percentage of total costs of quality are considered to be value-added