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 a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added Activity Quality Cost VA/NVA Classification Cost Classification $60,000 External failure Non-value-added 140,000 Appraisal Quality Control Activities Billing error correction Cable signal testing Reiaing service (installed incorrectly the first time) Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable Replacing old technology signal switches with higher quality switches Responding to customer home repair requests Training employees Value-added 40,000 External failureNon-value-added 50,000 Internal failureNon-value-added 25,000 External failure Non-value-added 175.000 Prevention Value-added 150.000 Prevention Value-added 30,000 External failureNon-value-added 80,000 Prevention Value-added Total activity cost $750,000 Feedback Check My Work Correct b. Prepare a cost of quality report. Assume that sales are $3,000,000. If required, round percentages to one decimal place Three Rivers Inc. Cost of Quality Report