Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Data table Number of units manufactured and sold .............................. 5,000 units Selling price per unit. .............................................. $ 1,400 Variable manufacturing and selling costs per unit
Data table Number of units manufactured and sold .............................. 5,000 units Selling price per unit. .............................................. $ 1,400 Variable manufacturing and selling costs per unit ...................... $ 800 Hours spent by engineers improving design ........................... 1,400 Testing and inspection hours per unit ................................ 1.5 hours Percentage of units reworked in the plant after inspection ............... 4% Average variable rework costs per freezer ............................. $ 300 Percentage of units repaired under warranty at customers' homes ........ 7% Average variable repair costs at customers' homes per freezer ........... $ 430 Estimated lost sales due to qualityreputation ......................... 600 units Design engineer's labor rate (includes benefits and payroll taxes} ........ $85 per hour Inspection costs per hour .......................................... $20 per hour -m Grady Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the muirernents. Grady Cost of Quality Report Costs Total Costs of Percentage of Total Costs Incurred Quality of Quality (Rounded) Prevention Costs: Total prevention costs % Appraisal Costs: Total appraisal costs % Internal Failure Costs: Total internal failure costs % External Failure Costs: Total external failure costs % Total costs of quality = = %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started