Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 2015, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related:

	2015
Sales (588,000 units @ $100)	$58,800,000
Retesting	1,470,000
Rework	2,410,800
Vendor certification	588,000
Consumer complaints	1,176,000
Warranty	2,116,800
Test labor	1,587,600
Inspection labor	1,764,000
Design reviews	117,600

. Calculate the relative distribution percentages for each quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.789% would be entered as "5.8".

Prevention		%
Appraisal		%
Internal failure		%
External failure		%

Using the Taguchi loss function, an average loss per unit is computed to be $14 per unit. What are the hidden costs of external failure?