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 $80120$

Training supplies $023$

Quality circles $031$

Total prevention costs $80172$

Appraisal costs:

Incoming inspection $3151$

Final testing $91101$

Total appraisal costs: $122152$

Internal failures costs:

Rework $61141$

Scrap $5181$

Total internal failure cost $112222$

External failure costs

Warranty repairs $10141$

Customer returns $33191$

Total external failure cost $432132$

Total quality cost $746678$

Total product cost $$4,750$ $$5,350$

$1.$ Expand the company$$s quality cost report by showing the costs in both years as percentages of both production cost and total quality costs.