In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below Costs in thousands This Year Year Inspection $ 630 $1,000 Quality engineering $ 300 $ 625 Depreciation of test equipment $ 345 $ Rework Labor $ 1,200 $1,680 Statistical process control $ 0 5 Cost of field servicing 5 1,425 $ 000 Supplies used in testing 45 Systess development 900 750 Warranty repairs $ 3.300 $ 1.050 Not cost of scrap 5 600 $ 1,140 Product testing $ 540 $ 1.350 Product recals $ 2,325 750 Disposal of defective products ya 1,050 225 60 $ 5 $ Sales have been flat over the past few years at $75,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective Required: 1 Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your Checi 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (i.e 0,1234 should be entered as 12.34).) Florex Company Quality Cont Report Last Yoar Amount (in Percent of thousands) Sales This Year Amount (in Percent of thousands) Sales Prevention costs 0 0.00 0.00 Total prevention costs Appraisal costs 0.00 0 0.00 Total appraisal costs Internal fallure costs 0 0.00 0.00 Total appraisal costs Internal failure costs: 0 0.00 0 0.00 Total Internal failure costs External failure costs: Total external failure costs 0 0.00 0 0.00 Total quality cost