Question
. Jacobson Fabrication produces laundry machines. Its sales last year were $8,000,000. The following costs were identified as being related to quality: Warranty repairs $62,000
. Jacobson Fabrication produces laundry machines. Its sales last year were $8,000,000. The following costs were identified as being related to quality: Warranty repairs $62,000 Rework 47,000 Machine repairs 38,000 Warranty replacements 54,000 Inspection 52,000 Supplier evaluation 36,000 Scrap 65,000 Preventive maintenance 49,000 Quality training 23,000 Product testing 80,000 Statistical process control 32,000 Legal fees for product liability claims 83,000 Customer support 36,000 Required: 1. Prepare a Cost of Quality Report for Jacobson for last year. 2. Based on the Cost of Quality Report prepared, what suggestions would you offer to Jacobson to improve its quality?
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