E19-18 (similar to) Question Help Osborn, Inc., produces cell phone equipment. Karen Mayfield, Osborn's president, implemented a quality-improvement program that has now been in operation for 2 years. The cost report shown here has recently been issued. (Click the icon to view the cost report.) Read the requirements. Data Table 290 Semi-Annual COQ Report, Osborn, Inc. (in thousands) 6/30/2016 12/31/2016 6/30/2017 12/31/2017 Prevention costs Machine maintenance 400 $ 400 $ 360 $ Supplier training 120 60 60 210 197 196 Design reviews 617 536 Total prevention costs Appraisal costs Incoming inspections 118 120 340 290 Final testing 458 262 Total appraisal costs Internal failure costs Rework 238 166 108 65 Scrap 323 236 173 Total internal failure costs 87 371 120 358 Requirements 1. For each period, calculate the ratio of each COQ category to revenues and to total quality costs. 2. Based on the results of requirement 1, would you conclude that Osbom's quality program has been successful? Prepare a short report to present your case. 3. Based on the 2015 survey, Karen Mayfield believed that Osborn had to improve product quality. In making her case to Osborn management, how might Mayfield have estimated the opportunity cost of not implementing the quality improvement program? Print | Done Begin by calculating the ratio of each cod category to revenues and to tot percentage due to rounding.) 6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs $ 400 Machine maintenance Supplier training 60 Design reviews 473 Total prevention costs Appraisal costs Incoming inspections 340 Final testing Total appraisal costs Internal failure costs Rework Scrap UULLP 358 % % Total intemal failure costs Extemal failure costs Warranty repairs 601 Customer retums Total external failure costs 786 % % $ 2.075 Total quality costs Total revenues $ 8,320 Enter any number in the edit fields and then click Check Answer. parts remaining