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Internal failure costs: Total cost Percentage of total cost Rework done due to faulty raw materials $21 000 Material disposal due bad quality $25 000

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Internal failure costs: Total cost Percentage of total cost Rework done due to faulty raw materials $21 000 Material disposal due bad quality $25 000 External failure costs: Warranty claims $30 000 Sales return $25 000 Prevention costs: Quality improvement by using better supplier $ 10 000 Employee training $5 000 Appraisal costs: Inspecting raw materials $7 000 Required: Complete the Percentage of total cost column and explain how the cost of quality report can be useful in better managing Likadale Pty Ltd and add value to customers. (8 marks) 17"C Sunny L O M O

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