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Ivanov, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the

Ivanov, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products:

Generator A Generator B
Units produced 161,300 349,600
Warranty work (units) 1,720 820
Scrapped units (number) 3,500 780
Inspection (hours) 3,470 1,660
Quality training (hours) 90 90
Activities:
Performing warranty work $802,640
Scrapping units 607,760
Inspecting 312,930
Quality training 90,720

Required:

1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. If required, round your answers to the nearest cent.

Generator A Generator B
Unit cost $fill in the blank 1 $fill in the blank 2

Which of the two seems to have the lowest quality?

Generator A,Generator B, Not enough information is given to answer

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