Harper, Inc., produces cell phone equipment. TinaMayfield, Harper'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.

Data table

Semi-Annual COQ Report, Harper, Inc. (in thousands)
	6/30/2019	12/31/2019	6/30/2020	12/31/2020
Prevention costs
Machine maintenance	$540	$540	$450	$240
Supplier training	11	110	55	45
Design reviews	60	210	198	197
Total prevention costs	611	860	703	482
Appraisal costs
Incoming inspections	118	122	80	56
Final testing	336	336	288	200
Total appraisal costs	454	458	368	256
Internal failure costs
Rework	233	206	167	115
Scrap	126	123	75	63
Total internal failure costs	359	329	242	178
External failure costs
Warranty repairs	180	82	69	58
Customer returns	572	532	267	184
Total external failure costs	752	614	336	242
Total quality costs	$2,176	$2,261	$1,649	$1,158
Total revenues	$8,320	$9,100	$9,480	$9,070

For each period, calculate the ratio of each COQ category to revenues and to total quality costs.

Begin by calculating the ratio of each COQ category to revenues and to total quality costs for

6/30/2019,

then

12/31/2019.

(Round your answers to the nearest whole percentage. Total quality costs as a percentage of revenues may not match the sum of each category's percentage due to rounding.)

	6/30/2019 (in thousands)
		% of		% of total
	Actual	revenues		quality costs
Prevention costs
Machine maintenance	$540
Supplier training	11
Design reviews	60
Total prevention costs	611		%		%
Appraisal costs
Incoming inspections	118
Final testing	336
Total appraisal costs	454		%		%
Internal failure costs
Rework	233
Scrap	126
Total internal failure costs	359		%		%
External failure costs
Warranty repairs	180
Customer returns	572
Total external failure costs	752		%		%
Total quality costs	$2,176		%
Total revenues	$8,320

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 Harper's quality program has been successful? Prepare a short report to present your case.
3.	Based on the 2018 survey, Tina Mayfield believed thatHarper had to improve product quality. In making her case to Harper management, how might Mayfield have estimated the opportunity cost of not implementing the quality-improvement program?