Exercise 1: PAF Cost Analysis (5 Points): Colorado Manufacturing Company (CMC) has gathered the following quality data. On the attached page you will find CMC's Annual Quality Cost Data. Within the table provided below, show your calculation setups and solutions for the following required calculations. Ratio of: Prevention to Failure Costs Appraisal to Failure Costs Prevention + Appraisal Costs to Failure Costs Proportion (%) of: Prevention to Total Quality Costs Appraisal to Total Quality Costs Failure to Total Quality Costs What is your interpretation of CMC's quality cost data? Are they doing well or poorly? State how and why you know this. What priority should be placed in addressing their quality costs? Why? CMC's Annual Quality Cost Data 4,234 21,265 24,123 25,654 0 Not evaluated Not evaluated Annual Quality Costs Failure costs Defective products Engineered scrap Nonengineered scrap Consumer adjustments Downgrading products Lost goodwill Customer policy changes TOTAL Appraisal costs Receiving inspection Line 1 inspection Line 2 inspection Spot checking TOTAL Prevention costs Quality training Process engineering Corporate Plant Product redesign TOTAL $ 10,155 9,225 7,455 9,766 $ 25,500 132,678 44,124 10,422