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. Costo (in thousands) Last This Year Year Inspection $ 450 $ 795 Quality engineering $ 390 5 675 Depreciation of test equipment 240 5 150 Rework labor $1,080 $2,100 Statistical process control 225 Cost of field servicing $1,275 Supplies used in testing Systems development $ 510 750 Warranty repairs $ 3,375 1.125 Net cost of scrap $ 540 $ 1,050 Product testing 900 1.800 Product recalls $2,100 225 Disposal of detective products 900 $ 630 S S 0 900 30 $ $ $ $ $ $ 60 $ 5 $ Sales have been fiat 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 percentage answers to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Quality Cost Report Last Year Amount (in Percent of thousands) Sales This Year Amount (in Percent of 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 Prey 1 of 2 Next >