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Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Quality Control Activities Billing error correction $38,500 Cable signal testing 103,600 Reinstalling service (installed incorrectly the first time) 82,700 Repairing satellite equipment 44,400 Repairing underground cable connections to the customer 25,000 Replacing old technology cable with higher quality cable 167,800 Replacing old technology signal switches with 191,800 higher quality switches Responding to customer home repair requests 46,200 Training employees 40,000 Total activity cost $740,000 b. Prepare a cost of quality report. Assume that sales are $3,700,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Classification Percent of Total Quality Cost Percent of Total Sales Prevention % % Appraisal % % Internal failure % External failure % % % % Total Check My Work c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value-Added/Non-Value-Added Activity Analysis Category Amount Percent Value-added Non-value-added Total Feedback Quality Cost % % %