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Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the company's cell phones low in product

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Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the company's cell phones low in product quality. Shocked by this result, Jorge Gomez, Mercury's president, set up a task force to implement a formal quality improvement program. Included on this task force were representatives from the Engineering, Marketing, Customer Service, Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below: Mercury, Incorporated Quality Cost Report (in thousands) Prevention costs: Machine maintenance Training suppliers Quality circles Total prevention cost Appraisal costs: Incoming inspection Final testing Total appraisal cost Last Year This Year $ 87 $ 140 0 27 0 37 87 204 37 57 97 107 134 164 Internal failure costs: Rework 67 147 Scrap 57 87 Total internal failure cost 124 234 External failure costs: 107 47 337 97 444 144 $ 789 $ 746 Warranty repairs Customer returns Total external failure cost Total quality cost Total production cost Required: $ 5,050 $ 5,650 1. Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost. Note: Round your percentage answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).

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