Jerry Homan, Bergen's president, decided to devote more resources to the improvement of product quality after learning that his company's products had been ranked fourth in product quality in a 2011 survey of telephone equipment users. He believed that Bergen could no longer set up a task force that he headed to implement a formal quality-improvement program. Included on the task force were representatives from engineering, sales, customer service, production, and accounting as Holman believed this was a company-wide program, and all employees should share the responsibility for the success of the program. After the first meeting of the task force, Sheila Haynes, manager of sales, asked Tony Reese, production manager, what he thought of the proposed program. Reese replied, "I have reservations. Quality is too abstract to be attaching costs to it, and to be holding you and me responsible for cost improvements. I like to work with goals that I can see and count! I don't like my annual bonus to be based on a decrease in quality costs; there are too many variables that we have no control over!" Bergen's quality-improvement program has now been in operation for eighteen months, and the cost report shown below has just been released. As they were reviewing the report, Haynes asked Reese what he thought of the quality program now. "The work is really moving through the Production Department, replied Reese. "We used to spend time helping the Customer Service Department solve its problems, but they are leaving us alone these days. I have no complaints so far. I'll be anxious to see how much the program increases our bonuses." Discuss why Tony Reese's current reaction to the quality-improvement program is more favorable than his initial reaction. Jerry Holman believed that the quality-improvement program was essential and that Bergen, Incorporated could no longer afford to ignore the importance of product quality. Discuss how Bergen could measure the opportunity cost of not implementing the quality-improvement program