Gibbons Industries manufactures freezers. Here is some information about ils "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements 2,500 units 2,000 $ $ 1,100 1,200 Appraisal Costs: Testing and inspection Total salus Total appraisal costs 144000 144000 1.0 hours 7% % Number of units manufactured and sold Selling price per unit ................. Variable manufacturing and selling costs per unit Hours spent by engineers improving design. Testing and inspection hours per unit....... Percentage of units reworked in the plant after inspection Average variable rework costs per freezer. Percentage of units repaired under warranty at customers' homes. Average variable repair costs at customers' homes per freezer.... Estimated lost sales due to quality.reputation ...... Design engineer's labor rate (Includes benefits and payroll taxes) Inspection costs per hour.............. 300 10% Internal Failure Costs: $ 540 Rework (intemal) Total sales Total internal failure posts 550 units $120 per hour $60 per hour % External Failure Costs: i Requirements Rework (external) ( Total sales Total external failure costs % 1. Prepare a cost of Quality (CO) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total coq. 2. Why would the variable repair cost at the customers' home generally be higher than the 'in factory rework cost? 3. How can use of the COO report lead to improvements in the production process or in the quality of the product itself? Choose from any list or enter any number in the input fields and then click Check Answer 2 parts remaining Cleal