Cost of quality Managers at Walla-Walla LTD want to determine the company's cost of quality. The following information has been gathered from the records for August: Defective units Units reworked 4,800 960 Defective units returned 320 Appraisal costs $14,000 Cost per unit for rework $18 Prevention costs $68,000 Profit per good unit produced and sold $85 Profit per defective unit sold $43 Cost per unit for customer returns $14 Cost of warranty work $7,200 Compute the following: a. Lost profits from selling defective work $201,600 b. Total costs of failure $ 28,960 c. Total quality cost $ 110,960