Mercury, Incorporated

Quality Cost Report

$($in thousands$)$

As they were reviewing the report, Elsoe asked Tran what he now thought of the quality improvement program. Tran replied. $"$I$\text{'}$m relieved that the new quality improvement program hasn't hurt our bonuses, but the program has increased the workload in the Production Department. It is true that customer returns are way down, but the cell phones that were returned by customers to retail outlets were rarely sent back to us for rework."

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. $($Round your percentage answers to $1$ decimal place $($i$.$e $0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).)$