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:

Required:

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 $0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).\backslash$table$[[$Mercury$,$ Incorporated$],[$Quality Cost Report$],[($in thousands$)],[,$Last Year,This Year$],[,$Amount,$\backslash$table$[[$Percentage of$],[$Total Production$],[$Cost$]],\backslash$table$[[$Percentage of$],[$Total Quality$],[$Cost$]],$Amount,$\backslash$table$[[$Percentage of$],[$Total Production$],[$Cost$]],\backslash$table$[[$Percentage of$],[$Total Quality$],[$Cost$]]],[$Prevention costs:$],[$Machine maintenance,$88,,,138,,],[$Training suppliers,$0,,,28,,],[$Quality circles,$0,,,38,,],[$Total prevention costs,$88,0\mathrm{.}0,0\mathrm{.}0,204,0\mathrm{.}0,0\mathrm{.}0],[$Appraisal costs:$],[$Incoming inspection,$38,,,58,,],[$Final testing,$98,,,108,,],[$Total appraisal costs,$136,0\mathrm{.}0,0\mathrm{.}0,166,0\mathrm{.}0,0\mathrm{.}0],[$Internal failure costs:$],[$Rework$,68,,,148,,],[$Scrap$,58,,,88,,],[$Total internal failure costs,$126,0\mathrm{.}0,0\mathrm{.}0,236,0\mathrm{.}0,0\mathrm{.}0],[$External failure costs:$],[$Warranty repairs,$108,,,48,,],[$Customer returns,$338,,,98,,],[$Total external failure costs,$446,0\mathrm{.}0,0\mathrm{.}0,146,0\mathrm{.}0,0\mathrm{.}0],[$Total quality cost,$796,0\mathrm{.}0,0\mathrm{.}0,752,0\mathrm{.}0,0\mathrm{.}0],[$Total production cost,$5,100,,,5,700,,]]$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$)$

Last Year This Year

Prevention costs:

Machine maintenance $ $88$ $ $138$

Training suppliers $028$

Quality circles $038$

Total prevention cost $88204$

Appraisal costs:

Incoming inspection $3858$

Final testing $98108$

Total appraisal cost $136166$

Internal failure costs:

Rework $68148$

Scrap $5888$

Total internal failure cost $126236$

External failure costs:

Warranty repairs $10848$

Customer returns $33898$

Total external failure cost $446146$

Total quality cost $ $796$ $ $752$

Total production cost $ $5,100$ $ $5,700$

Required:

$1.$ 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 $0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$