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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.

image text in transcribedimage text in transcribedimage text in transcribed 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|} \hline \multicolumn{7}{|c|}{ (in thousands) } \\ \hline & \multicolumn{3}{|c|}{ Last Year } & \multicolumn{3}{|c|}{ This Year } \\ \hline & Amount & \begin{tabular}{c} Percentage of \\ Total Production \\ Cost \end{tabular} & \begin{tabular}{c} Percentage of \\ Total Quality \\ Cost \end{tabular} & Amount & \begin{tabular}{c} Percentage of \\ Total Production \\ Cost \end{tabular} & \begin{tabular}{c} Percentage of \\ Total Quality \\ Cost \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Prevention costs: } \\ \hline Machine maintenance & 84 & & & 134 & & \\ \hline Training suppliers & 0 & & & 24 & & \\ \hline Quality circles & 0 & & & 34 & & \\ \hline Total prevention costs & 84 & & & 192 & & \\ \hline \multicolumn{7}{|l|}{ Appraisal costs: } \\ \hline Incoming inspection & 34 & & & 54 & & \\ \hline Final testing & 94 & & & 104 & & \\ \hline Total appraisal costs & 128 & & & 158 & & \\ \hline \multicolumn{7}{|l|}{ Internal failure costs: } \\ \hline Rework & 64 & & & 144 & & \\ \hline Scrap & 54 & & & 84 & & \\ \hline Total internal failure costs & 118 & & & 228 & & \\ \hline \multicolumn{7}{|l|}{ External failure costs: } \\ \hline Warranty repairs & 104 & & & 44 & & \\ \hline Customer returns & 334 & & & 94 & & \\ \hline Total external failure costs & 438 & & & 138 & & \\ \hline Total quality cost & 768 & & & 716 & & \\ \hline Total production cost & 4,900 & & & 5,500 & & \\ \hline \end{tabular}

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