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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.

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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: 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 0.1234 should be entered as 12.3 ). \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Mercury, Incorporated } \\ \hline 6 & \multicolumn{7}{|c|}{ Quality Cost Report } \\ \hlineE & \multicolumn{7}{|c|}{ (in thousands) } \\ \hline & \multicolumn{4}{|c|}{ Last Yoar } & \multicolumn{3}{|c|}{ This Year } \\ \hline & & unt & \begin{tabular}{l} Percentage of \\ Total Production \\ Cost \end{tabular} & \begin{tabular}{l} Percentage of \\ Total Quality \\ Cost \end{tabular} & Amount & \begin{tabular}{l} Percentage of \\ Total Production \\ Cost \end{tabular} & \begin{tabular}{l} Percentage of \\ Total Quality \\ Cost \end{tabular} \\ \hline \multicolumn{8}{|l|}{ Prevention costs: } \\ \hline Machine maintenance & s & 70 & & & 130 & & \\ \hline Training suppliers & & 0 & & & 17 & E & \\ \hline Quality circles & & 0 & & & 27 & 2 & \\ \hline Total prevention costs & & 70 & & & 174 & & \\ \hline \multicolumn{8}{|l|}{ Appraisal costs: } \\ \hline Incoming inspection & & 27 & & & 47 & & \\ \hline Final testing & & 87 & & & 97 & & \\ \hline Total appraisal costs & & 114 & - & & 144 & & \\ \hline \multicolumn{8}{|l|}{ Internal falure costs: } \\ \hline Rework & & 57 & & & 137 & & \\ \hline Serap & & 47 & & & 77 & & \\ \hline Total internal failure costs & & 104 & & & 214 & & \\ \hline \multicolumn{8}{|l|}{ External failure costs: } \\ \hline Warranty repairs & & 97 & & & 37 & & \\ \hline Customer returns & & 327 & & & 87 & & \\ \hline Total external fallure costs & & 424 & & & 124 & & \\ \hline Total quality cost & 5 & 712 & & & 656 & & \\ \hline Total production cost & $ & 4,550 & & & 5,150 & & \\ \hline \end{tabular}

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