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Nuke-It Now manufactures microwave ovens. The following represents the financial information from one of its manufacturing plants for two years Year 1 Year 2 $3,430,000

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Nuke-It Now manufactures microwave ovens. The following represents the financial information from one of its manufacturing plants for two years Year 1 Year 2 $3,430,000 $3,920,000 s Sales Costa Redesign process Discard defective units Training on equipment Warranty clan Contract cancellations Rework Preventive maintenance Product liability claims Final inspection 31,000 $ 35, 100 249.000 132,000 191,000 73.000 118,000 306,000 201,000 35,800 40,800 202,000 173,000 150,000 102.000 158,000 172,000 196,000 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for year 1 and year 2 Category Activity Redesign process Discard defective units Training on equipment Warranty claims Contract cancellations Rework Preventive maintenance Product liability claims Final inspection Year 1 Year 2 Prevention % % % % Appraisal Internal failure % % External failure % %

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