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 eld 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) Last Year This Year Inspection S 630 $ 1,218 Quality engineering $ 420 $ 630 Depreciation of test equipment $ 588 $ 420 Rework labor $ 1,260 $ 1,680 Statistical process control $ 0 $ 420 Cost of field servicing $ 1,470 $ 1,092 Supplies used in testing $ 42 $ 42 Systems development $ 340 $ 1,050 Warranty repairs $ 3,570 $ 1,512 Net cost of scrap $ 210 $ 1,050 Product testing S 340 $ 1,260 Product recalls $ 2,940 $ 924 Disposal of defective products S 630 $ 420 Sales have been flat over the past few yea rs. at $84,000,000 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 percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year This Year Amount (in Percent of Amount (in Percent of thousands) Sales thousands) Sales Prevention costs: Total prevention costs Appraisal costs Total appraisal costs Internal failure costs: Total internal failure costs External failure costs: Total external failure costs Total quality cost