Pareto Chart and Cost of Quality ReportManufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the following: The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: 1. Select the following Pareto chart of the company activities. a. b. c. d. The correct answer is 2. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). If required, round percentages to one decimal place. Quality Cost Classification Activity Cost Percent of Total Department Cost Prevention $ 15000 6 % Appraisal % Internal failure % External failure % Not a cost of quality % Total $ 250000 100 % 3. Determine the percentages of total costs that are value- and non-value-added. Activity Cost Percent of Total Department Cost Value-added $ % Non-value-added % Total $ 250000 100 % 4. The company has 65% of its total costs as . costs represent 26% of the total costs. costs are 9% of the total. There is only one activity classified as a(n) cost.