Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. Prevention costs: Prototype inspection Vendor certification Total prevention costs Appraisal costs: Process acceptance Test labor Total Appraisal costs Internal failure costs: $ 230,000 460,000 $690,000 $245,000 290,000 $ 535,000 Retesting Rework Total internal failure costs External failure costs: Recalls Product liability $ 152,500 305,000 $457,500 $ 329,000 500,000 Total external failure costs Total quality costs $ 829,000 $2,511,500 At the zero-defect state, Nabors expects to spend $287,500 on prototype inspection, $57,500 on vendor certification, and $30,000 on process acceptance. Assume sales to be $2,400,000. Required: 1. Prepare a long-range performance report for 20x5. Enter all answers as positive amounts. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table. Select "Favorable" if it is favorable. Round percentage answers to two decimal places, if rounding is required. For example, 5.789% would be entered as "5.79". Enter "0" as the target cost amount if there would be no cost at the zero-defect state. Nabors Company Long-Range Performance Report For the Year Ended June 30, 20x5