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Digital River Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Digital Light are identified as follows:
Digital River Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Digital Light are identified as follows: Activities Activity Cost $36,000.00 96,000.00 30,000.00 36,000.00 18,000.00 168,000.00 126,000.00 24,000.00 66,000.00 $600,000.00 2Billing error correction Cable signal testing 4Reinstalling service (installed incorrectly the first time) 5 Repairing satellite equipment 6 Repairing underground cable connections to the customer 7Replacing old technology cable with higher quality cable 8Replacing old technology signal switches with higher quality switches 9 Responding to customer home repair request 10 Training employees Total Required: A. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added B. Prepare a cost of quality report. Assume that sales are $2,000,000. Round percentages to one decimal place.* C. Prepare a value-addedon-value-added analysis.* D. Interpret the information in (B) and (C). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries
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