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:

Sales have been flat over the past few years, at $90,000,000 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).

\begin{tabular}{|c|c|c|c|} \hline & \multicolumn{3}{|c|}{ Costs (in thousands) } \\ \hline & Last Year & This & 5 Year \\ \hline Inspection & $810 & $ & 1,152 \\ \hline Quality engineering & $540 & & $810 \\ \hline Depreciation of test equipment & $675 & & $270 \\ \hline Rework labor & $1,170 & $ & 1,890 \\ \hline Statistical process control & $0 & & $405 \\ \hline Cost of field servicing & $1,440 & $ & 1,260 \\ \hline Supplies used in testing & $45 & & $63 \\ \hline Systems development & $630 & & $900 \\ \hline Warranty repairs & $3,870 & $ & 1,710 \\ \hline Net cost of scrap & $630 & $ & 1,260 \\ \hline Product testing & $990 & $ & 1,440 \\ \hline Product recalls & $2,610 & $ & 1,080 \\ \hline Disposal of production defects & $900 & & $900 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Florex Company } \\ \hline \multicolumn{5}{|c|}{ Quality Cost Report } \\ \hline & \multicolumn{2}{|c|}{ Last Year } & \multicolumn{2}{|c|}{ This Year } \\ \hline & Amount(inthousands) & PercentofSales & Amount(inthousands) & PercentofSales \\ \hline \multicolumn{5}{|l|}{ Prevention costs: } \\ \hline \multicolumn{5}{|c|}{7} \\ \hline \multicolumn{5}{|l|}{7} \\ \hline \multicolumn{5}{|l|}{7} \\ \hline \multicolumn{5}{|c|}{ Total prevention costs } \\ \hline \multicolumn{5}{|l|}{ Appraisal costs } \\ \hline \multicolumn{5}{|c|}{7} \\ \hline \multicolumn{5}{|l|}{7} \\ \hline \\ \hline \\ \hline \multicolumn{5}{|c|}{ Total appraisal costs } \\ \hline \multicolumn{5}{|l|}{ Internal failure costs: } \\ \hline \\ \hline \\ \hline \\ \hline \multicolumn{5}{|c|}{ Total internal failure costs } \\ \hline \multicolumn{5}{|l|}{ External failure costs: } \\ \hline \multicolumn{5}{|c|}{7} \\ \hline \multicolumn{5}{|l|}{7} \\ \hline \\ \hline \multicolumn{5}{|c|}{ Total external failure costs } \\ \hline Total quality cost & & & & \\ \hline \end{tabular}