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Problem 1 2 - 1 9 ( Algo ) Quality Cost Report [ LO 1 2 - 2 ] In response to intensive foreign competition,

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Problem 12-19(Algo) Quality Cost Report [LO12-2]
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the
quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount
of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality
control over the last two years are given below.
Sales have been flat over the past few years, at $75,000,000 per year. A great deal of money has been spent in the effort to upgrade
quality, and management is anxious to see whether or not the effort has been effective.
Required:
Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your
percentage answers to 2 decimal places (l.e 0.1234 should be entered as 12.34).)
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