Question
Industrial Technologies, Inc. (ITI), produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an
Industrial Technologies, Inc. (ITI), produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $30,600, whereas no. 172 typically sells for approximately $28,700. The company is very concerned about quality and has provided the following information: No. 165 No. 172 Number of machines produced and sold 190 260 Warranty costs: Average repair cost per unit $ 930 $ 410 Percentage of units needing repair 75 % 10 % Reliability engineering at $180 per hour 1,630 hours 2,060 hours Rework at ITI's manufacturing plant: Average rework cost per unit $ 1,930 $ 1,630 Percentage of units needing rework 35 % 30 % Manufacturing inspection at $60 per hour 360 hours 530 hours Transportation costs to customer sites to fix problems $ 30,100 $ 16,200 Quality training for employees $ 35,600 $ 50,600 Using the classifications in part (1), compute ITI's quality costs for machine no. 165 in dollars and as a percentage of sales revenues. Also calculate prevention, appraisal, internal failure, and external failure costs as a percentage of total quality costs. (Round "Percentage of total quality costs" to 2 decimal places. Total may not be equal to 100% due to rounding.) how can i calculate the Warranty cost ? for this problem
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