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Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To

Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows:

Costs (in thousands)
Quarter 1 Quarter 2
Cost of testing equipment $ 270 $ 390
Customer returns of defective goods $ 3,200 $ 200
Downtime due to quality problems $ 600 $ 1,100
Inspection $ 1,700 $ 2,770
Net cost of scrap $ 800 $ 1,300
Product recalls $ 3,500 $ 600
Quality engineering $ 1,080 $ 1,650
Rework labor $ 1,400 $ 1,600
Statistical process control $ 0 $ 270
Supplies used in testing $ 30 $ 40
Systems development $ 120 $ 680
Warranty repairs $ 3,300 $ 2,800

The companys sales were $95 million in Quarter 1 and $100 million in Quarter 2

b-1 From quarter 1 to quarter 2, the external failure costs decreased by
b-2 From quarter 1 to quarter 2, the prevention costs increased by
b-3 From quarter 1 to quarter 2, the internal failure costs increased by

sing PivotChart again, create a stacked bar chart that includes a total of two barsone for each quarter. Each bar should quantify that quarters total quality costs as a percent of that quarters sales. It should also depict each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure) as a percent of sales. Based on a review of your bar chart, answer the following questions: (Round your answers to 2 decimal places.)

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c-1 From quarter 1 to quarter 2, the appraisal costs as a percent of sales increased by %
c-2 From quarter 1 to quarter 2, the external failure costs as a percent of sales decreased by %
c-3 From quarter 1 to quarter 2, the prevention costs as a percent of sales increased by %

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