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 beer 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 rontrol nev the last two vass are given helnw. Sales have been flat over the past few years, at $75 ooo ooO per year. A great dea 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