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) Last Year This Year Inspection $ 630 $ 918 Quality engineering $ 540 $ 720 Depreciation of test equipment $ 495 $ 180 Rework labor $ 1,080 $ 1,530 Statistical process control $ 0 $ 270 Cost of field servicing $ 1,260 $ 1,170 Supplies used in testing $ 45 $ 72 Systems development $ 720 $ 900 Warranty repairs $ 4,680 $ 1,440 Net cost of scrap $ 720 $ 1,440 Product testing $ 990 $ 1,710 Product recalls $ 2,610 $ 990 Disposal of defective products $ 900 $ 1,080 Sales have been flat over the past few years, at $90,000,000 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).)