HER Trend, Long-Range Performance Report In 2014, Tru-Delite Frozen Desserts, Inc., instituted a quality improvement program. At the end of 2015, the management of the corporation requested a report to show the amount saved by the meas- ures taken during the year. The actual sales and quality costs for 2014 and 2015 are as follows: 2014 2015 $600,000 $600.000 3 15,000 15,000 Rework 20,000 10,000 Training program 5.000 6,000 Consumer complaints 5,000 Sales PES ASI NA 10.000 2 2014 2015 Lost sales, incorrect labeling Test labor Inspection labor Supplier evaluation 10.00 25,000 15,000 8.000 24.000 13,000 Scrap Training program Supplier evaluation Test labor Inspection labor Total quality costs Required: 1. Profits increased by what amount due to quality improvements made in 2015? 2. Prepare a long-range performance report that compares the quality costs incurred at the end of 2015 with the quality cost structure expected at the end of 2019. 3. Are the targeted costs in the year 2019 all value-added costs? How would you interpret the variances if the targeted costs are value-added costs? 4. What would be the profit increase in 2019 if the 2.5 percent performance standard is met in that year? Submit your work and answers in a Word or Excel Document. Required: 1. Profits increased by what amount due to quality improvements made in 2015? 2. Prepare a long-range performance report that compares the quality costs incurred at the end of 2015 with the quality cost structure expected at the end of 2019. Are the targeted costs in the year 2019 all value-added costs? How would you interpret the variances if the targeted costs are value-added costs? What would be the profit increase in 2019 if the 2.5 percent performance standard is met in that year? 3