Please answer both questions. Attached below is data for the case.

Use the Westfield Corporation Excel documents for questions 3 to 18. 8. A direct labor employee is paid $15 per hour, works 2,000 hours regular time in the year, works 100 hours of overtime in the year. What is the total cost of the employee including benefits? $40,800 $38,400 $30,000 $44,200 Question 9 0.5 pts Use the Westfield Corporation Excel documents for questions 3 to 18. 9. What does the trend in the total cost of quality from the quality cost report for years 6,7 , and 8 suggest? Appraisal expenses need to be increased Prevention expenses are not effective Prevention expenses are effective Internal failure expenses need to be lowered \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Exhibt 1} & \multirow[b]{3}{*}{ Year 6} & \multirow[b]{3}{*}{Yr6%} & \multicolumn{5}{|c|}{\begin{tabular}{l} Westfield Corporation \\ Functional Format Income Statements \end{tabular}} \\ \hline & & & & & & & Proforma \\ \hline & & & Year 7 & Yr 7% & Year 8 & Yr 8% & Year 9 \\ \hline \# of Games Sold & 800,000 & & 890,000 & & 1,010,000 & & 1,259,682 \\ \hline Average Price per Game & $23.00 & & $24.00 & & $24.15 & & $24.42 \\ \hline Sales Revenue & $18,400,000 & 100.00% & $21,360,000 & 100.00% & $24,391,500 & 100.00% & $30,762,309 \\ \hline less: Returns \& Allowances & 30,000 & 0.16% & 29,000 & 0.14% & 31,000 & 0.13% & 0 \\ \hline Net Sales Revenue & 18,370,000 & 99.84% & 21,331,000 & 99.86% & 24,360,500 & 99.87% & 30,762,309 \\ \hline less: Cost of Goods Sold (Sch 1) & 9,766,440 & 53.08% & 10,800,680 & 50.56% & 12,587,618 & 51.61% & 0 \\ \hline Gross Margin & 8,603,560 & 46.76% & 10,530,320 & 49.30% & 11,772,882 & 48.27% & 30,762,309 \\ \hline less: Marketing Expenses (Sch 7) & 5,358,000 & 29.12% & 6,194,000 & 29.00% & 7,010,000 & 28.74% & 8,781,000 \\ \hline less: G \& A Expense (Sch 8) & 1,845,000 & 10.03% & 2,004,000 & 9.38% & 2,202,000 & 9.03% & 0 \\ \hline Net Operating Income & 1,400,560 & 7.61% & 2,332,320 & 10.92% & 2,560,882 & 10.50% & 21,981,309 \\ \hline less: Other Expenses & 204,000 & 1.11% & 180,000 & 0.84% & 156,000 & 0.64% & \\ \hline Net Income Before Income Taxes & $1,196,560 & 6.50% & $2,152,320 & 10.08% & $2,404,882 & 9.86% & 21,981,309 \\ \hline less: Allowance for Income Taxes & 454,693 & 2.47% & 817,882 & 3.83% & 913,855 & 3.75% & 8,352,898 \\ \hline Net Income After Taxes & $741,867 & 4.03% & $1,334,438 & 6.25% & $1,491,027 & 6.11% & 13,628,412 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Schedule 7 - Marketing Expenses & & & & & & & Proforma \\ \hline & Year 6 & Yr6% & Year 7 & Yr7% & Year 8 & Yr 8% & Year 9 \\ \hline Advertising & $1,000,000 & 5.43% & $1,180,000 & 5.52% & $1,210,000 & 4.96% & $1,410,000 \\ \hline Allocated Overhead & 300,000 & 1.63% & 295,000 & 1.38% & 312,000 & 1.28% & 312,000 \\ \hline Depreciation & 30,000 & 0.16% & 30,000 & 0.14% & 30,000 & 0.12% & 30,000 \\ \hline Distribution Expansion Costs & 0 & 0.00% & 50,000 & 0.23% & 0 & 0.00% & 100,000 \\ \hline Other Expenses & 80,000 & 0.43% & 102,000 & 0.48% & 103,000 & 0.42% & 103,000 \\ \hline Research and Development & 600,000 & 3.26% & 550,000 & 2.57% & 580,000 & 2.38% & 620,000 \\ \hline Salaries \& Commissions & 2,000,000 & 10.87% & 2,490,000 & 11.66% & 2,900,000 & 11.89% & 3,746,000 \\ \hline Sales Promotion & 178,000 & 0.97% & 300,000 & 1.40% & 200,000 & 0.82% & 220,000 \\ \hline Supplies \& Equipment & 100,000 & 0.54% & 30,000 & 0.14% & 25,000 & 0.10% & 30,000 \\ \hline Training-Sales Reps & 200,000 & 1.09% & 160,000 & 0.75% & 400,000 & 1.64% & 520,000 \\ \hline Travel & 700,000 & 3.80% & 840,000 & 3.93% & 1,080,000 & 4.43% & 1,520,000 \\ \hline Website \& IT & 170,000 & 0.92% & 167,000 & 0.78% & 170,000 & 0.70% & 170,000 \\ \hline Total Marketing Expenses & $5,358,000 & 29.12% & $6,194,000 & 29.00% & $7,010,000 & 28.74% & $8,781,000 \\ \hline Schedule 8 - General \& Admi & & & & & & & Proforma \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Schedule 1 \\ Cost of Goods Manufactured \end{tabular}} & \multirow[b]{2}{*}{ Year 6} & \multirow[b]{2}{*}{ Yr 6%} & \multicolumn{2}{|c|}{ Westfield Corporation } & \multirow[b]{2}{*}{ Year 8} & \multirow[b]{2}{*}{ Yr 8%} & \multirow[b]{2}{*}{\begin{tabular}{l} Proforma \\ Year 9 \end{tabular}} & \multirow[b]{2}{*}{ Yr 9%} \\ \hline & & & Year 7 & Yr 7% & & & & \\ \hline Direct Labor (DL) (Sch 3) & $2,365,440 & 24.22% & $2,938,880 & 27.21% & $3,262,848 & 25.92% & $0 & \#DIV/0! \\ \hline Direct Materials & 4,360,000 & 44.64% & 5,028,500 & 46.56% & 6,060,000 & 48.14% & 0 & \#DIV/0! \\ \hline Manufacturing Overhead (Sch 2) & 3,041,000 & 31.14% & 2,833,300 & 26.23% & 3,264,770 & 25.94% & 0 & \#DIV/0! \\ \hline Cost of Goods Manufactured & $9,766,440 & 100.00% & $10,800,680 & 100.00% & $12,587,618 & 100.00% & $0 & \#DIV/0! \\ \hline Sales Revenue & $18,370,000 & & $21,331,000 & & $24,360,500 & & $30,762,309 & \\ \hline Units Produced & 800,000 & & 890,000 & & 1,010,000 & & 1,259,682 & \\ \hline Units Produced per DL Employee & 12,121 & & 11,125 & & 11,609 & & 11609.96977 & \\ \hline \multicolumn{9}{|l|}{ Per Unit Data } \\ \hline Direct Labor per unit & $2.9568 & & $3.3021 & & $3.2305 & & $0.0000 & \\ \hline Direct Materials per unit & $5.4500 & & $5.6500 & & $6.0000 & & & \\ \hline Manufacturing Overhead per unit & $3.8013 & & $3.1835 & & $3.2324 & & $0.0000 & \\ \hline \multicolumn{9}{|l|}{ As a % of Sales Revenue } \\ \hline Direct Labor & 12.88% & & 13.78% & & 13.39% & & 0.00% & \\ \hline Direct Materials & 23.73% & & 23.57% & & 24.88% & & 0.00% & \\ \hline Manufacturing Overhead & 16.55% & & 13.28% & & 13.40% & & 0.00% & \\ \hline Indirect Labor & 4.57% & & 4.10% & & 4.76% & & 0.00% & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \begin{tabular}{l} Schedule 2 \\ Manufacturing Overhead \end{tabular} & Year 6 & Year 7 & Year 8 & \begin{tabular}{l} Proforma \\ Year 9 \end{tabular} \\ \hline Appraisal Costs & $175,000 & $156,000 & $127,000 & $0 \\ \hline Depreciation & 340,000 & 340,000 & 340,000 & \\ \hline Indirect Labor & 840,000 & 874,000 & 1,160,000 & \\ \hline Indirect Material & 40,000 & 44,300 & 51,000 & \\ \hline Insurance & 130,000 & 137,000 & 142,000 & \\ \hline Maintenance & 361,000 & 364,000 & 375,000 & \\ \hline Miscellaneous & 40,000 & 29,000 & 33,000 & \\ \hline Overtime (1.6Xregular rate) & 230,000 & 25,000 & 114,270 & \\ \hline Prevention Costs & 320,000 & 332,000 & 350,000 & 0 \\ \hline Rent & 110,000 & 80,000 & 80,000 & \\ \hline Repairs/Replacements in Field & 15,000 & 20,000 & 18,000 & 0 \\ \hline Rework & 80,000 & 77,000 & 85,000 & 0 \\ \hline Scrap & 50,000 & 31,000 & 36,500 & 0 \\ \hline Taxes & 100,000 & 104,000 & 115,000 & \\ \hline Utilities & 210,000 & 220,000 & 238,000 & \\ \hline Total Manufacturing Overhead & $3.041.000 & $2.833,300 & $3,264,770 & $0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \begin{tabular}{l} Schedule 3 \\ Regular Time Direct Labor (DL) \end{tabular} & Year 6 & Year 7 & Year 8 & \begin{tabular}{l} Proforma \\ Year 9 \end{tabular} \\ \hline Hours worked in year & 2,000 & 2,000 & 2,000 & 2,000 \\ \hline Average wage rate & $14.00 & $14.35 & $14.65 & \\ \hline Average wages per DL employee & $28,000 & $28,700 & $29,300 & $0 \\ \hline Plus 28% benefits & $7,840 & $8,036 & $8,204 & $0 \\ \hline Total cost per DL employee & $35,840 & $36,736 & $37,504 & $0 \\ \hline Number of DL employees & 66 & 80 & 87 & 108.50 \\ \hline Number of shifts & 2.00 & 2.42 & 2.64 & 3.29 \\ \hline Total direct labor hours & 132,000 & 160,000 & 174,000 & 217,000 \\ \hline Total direct labor cost & $2,365,440 & $2,938,880 & $3,262,848 & $0 \\ \hline \end{tabular} William Carlton Haeberle (2018) William Carlton Haeberle (2018) \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|l|}{ Westfield Corporation Sales Forecast } \\ \hline Average Price Projection & Year 9 & & & & \\ \hline Year 8 average price & 24.15 & & & & \\ \hline \multicolumn{6}{|l|}{ Target Market(s) Adjustments } \\ \hline Target market(s) & 0 & & & & \\ \hline \multicolumn{6}{|l|}{ Product Adjustments } \\ \hline New templates & 0.0898 & & & & \\ \hline Extensions \& options to current templates & 0.0079 & & & & \\ \hline \multicolumn{6}{|l|}{ New product development } \\ \hline \multicolumn{6}{|l|}{ Price Adjustments } \\ \hline \multicolumn{6}{|l|}{ Terms of sale } \\ \hline Distribution Adjustments & & & & & \\ \hline Distribution expansion - California \& New York & 0.085 & & & & \\ \hline \multicolumn{6}{|l|}{ Distribution expansion - Mexico } \\ \hline \multicolumn{6}{|l|}{ Promotion Adjustments } \\ \hline Advertising & 0.024 & & & & \\ \hline Sales promotion & 0 & & & & \\ \hline Sales rep commission structure & 0.01 & & & & \\ \hline Training sales reps & 0.02 & & & & \\ \hline Travel & 0.01 & & & & \\ \hline Website \& IT & 0 & & & & \\ \hline \multicolumn{6}{|l|}{ Environmental Factor Adjustments } \\ \hline Competitive & -0.06 & & & & \\ \hline Economic & 0.048 & & & & \\ \hline Political, legal, regulatory & 0.036 & & & & \\ \hline Social/Cultural & 0 & & & & \\ \hline Technological & 0 & & & & \\ \hline \multirow[t]{2}{*}{ Average Price Projection } & $24.42 & & & & \\ \hline & & & Year 9 & & \\ \hline Sales Volume Projection & Year 9 & Weight & Weighted & & \\ \hline Volume Forecast by \# of Sales Reps - Schedule 1 & 1,263,464 & 50.00% & 631,732 & & \\ \hline Volume Forecast by Areas of Distribution - Schedule 2 & 1,294,832 & 40.00% & 517,933 & & \\ \hline Volume Forecast by \# of Product Templates - Schedule 3 & 1,100,167 & 10.00% & 110,017 & & \\ \hline \multirow[t]{2}{*}{ Sales Volume Projection } & & & 1,259,682 & & \\ \hline & & & & Forecast & \\ \hline Schedule 1 - Volume Forecast by \# of Sales Reps & Year 6 & Year 7 & Year 8 & Year 9 & \\ \hline Number of sales reps & 10 & 12 & 14 & 20 & \\ \hline Volume & 800,000 & 890,000 & 1,010,000 & & \\ \hline Average volume per sales rep & 80,000 & 74,167 & 72,143 & & \\ \hline Weight & 20% & 30% & 50% & & \\ \hline Weighted average - Volume per Sales Rep & 16,000 & 22,250 & 36,071 & 74,321 & \\ \hline \multirow[t]{2}{*}{ Projected sales volume } & & & & 1,263,464 & \\ \hline & & & & Forecast & \\ \hline Schedule 2 - Volume Forecast by Areas of Distribution & Year 6 & Year 7 & Year 8 & Year 9 & \# Sales Reps \\ \hline Arizona & & & 40,000 & 74,321 & 1 \\ \hline California & & & & 111,482 & 3 \\ \hline Florida & 160,000 & 170,000 & 180,000 & 200,668 & 3 \\ \hline Georgia & 50,000 & 80,000 & 105,000 & 105,000 & 1 \\ \hline Illinois & 155,000 & 160,000 & 170,000 & 170,000 & 2 \\ \hline Indiana & 80,000 & 85,000 & 80,000 & 80,000 & 1 \\ \hline Michigan & 90,000 & 95,000 & 100,000 & 100,000 & 1 \\ \hline New York & & & & 111,482 & 3 \\ \hline Ohio & 115,000 & 120,000 & 115,000 & 118,914 & 2 \\ \hline Texas & 150,000 & 180,000 & 220,000 & 222,964 & 3 \\ \hline \multicolumn{6}{|l|}{ Mexico } \\ \hline \multirow[t]{2}{*}{ Totals } & 800,000 & 890,000 & 1.010.000 & 1.294.832 & 20 \\ \hline & & & & Forecast & \\ \hline Schedule 3 - Volume Forecast by \# of Product Templates & Year 6 & Year 7 & Year 8 & Year 9 & \\ \hline# of product templates & 130 & 144 & 160 & 177 & \\ \hline Volume & 800,000 & 890,000 & 1,010,000 & & \\ \hline Yearly average sales volume per template & 6,154 & 6,181 & 6,313 & & \\ \hline Average sales volume per template & & & 6,216 & & \\ \hline Projected sales volume & & & & 1,100,167 & \\ \hline \end{tabular} William Carlton Haeberle (2018)