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In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (

In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below:
Costs (in thousands)
Last Year This Year
Inspection $ 750 $ 900
Quality engineering $ 420 $ 570
Depreciation of test equipment $ 210 $ 240
Rework labor $ 1,050 $ 1,500
Statistical process control $ 0 $ 180
Cost of field servicing $ 1,200 $ 900
Supplies used in testing $ 30 $ 60
Systems development $ 480 $ 750
Warranty repairs $ 3,600 $ 1,050
Net cost of scrap $ 630 $ 1,125
Product testing $ 810 $ 1,200
Product recalls $ 2,100 $ 750
Disposal of production defects $ 720 $ 975
Sales have been flat over the past few years, at $75,000,000 per year.
Required:
1. Prepare a quality cost report for this year and last year.
Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).

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