Hunt Corporation is considering spending the following amounts on a new TQM program in $2024$:

Strength$-$testing one item from each batch

$95,000$

Training suppliers in TQM

$55,000$

Identifying preferred suppliers that commit to on$-$time delivery of perfect quality materials

$30,000$

Hunt Corporation expects the new program to save costs in $2024$ through the following:

Avoid lost profits from lost sales due to disappointed customers

$48,000$

Avoid rework and spoilage

$50,000$

Avoid inspection of raw materials

$52,000$

Avoid warranty costs

$35,000$

Requirements

Prepare a cost of quality report in good form. $($No percentages are needed$)$

Should Hunt Corporation implement the new quality program? Provide your reason.

Discuss what costs are traditionally excluded from the quality cost report.

Identify the three types of opportunity costs of not implementing a quality cost program.