Proprinting, Ltd is Australian owned and specializes in the digital printing. Proprinting provides online printing and run by qualified tradesmen who print the jobs to perfection. The services include Business Cards, Stickers, Posters, Brochures, Folders, Booklets, Letterhead and Newsletters, Tri-Folds, Manuals, Post Cards, Flyers, Catalogues, Envelopes. The printing facility is loaded with the latest innovations in OFFSET and Digital printing technology. The team is comprised of digital graphics specialists and experienced press operators. It's this unique combination of technology and talent that produces the brilliant results.

Ethan, the manager of the company informed that in 2019 the quality compliance costs were approximately 14% of sales. He aims to implement zero defect production process. However, Ethan also aware that it is important to reduce the non-value-added activities and protecting the brand image while improving company’s profit. Therefore, he planned a five- year quality costs management program to improve the quality performance. He sets an ambitious plan to reduce the quality cost to around 2 % of sales.

The following information provides indicators to the success of the quality costs management program.

YEAR	SALES REVENUES	QUALITY COSTS
2020	$2 960 000	$348 400
2021	3 750 000	$481 750
2022	4 420 000	$532 490
2023	5 230 000	$242 175
2024	6 000 000	$117 800

Meanwhile, detail of the quality costs reports across the five years is provided below:

Quality cost Activity	2020	2021	2022	2023	2024
Improvements in Quality process	$9,600	$19,540	$57,455	$25,650	$15,000
Quality training of staff to use new equipment and	$6,750	$32,710	$53,200	$42,475	$16,000
Pruorcehsaseinsg of equipment and updated manuals	$3,750	$9,750	$25,235	$0	$0
Quality reporting (move from yearly to a monthly basis)	$3,500	$6,000	$20,000	$5,500	$2,500
Proofreading printed materials	$43,950	$99,950	$88,000	$31,850	$12,000
Other inspection (paper and inks from suppliers)	$44,650	$43,800	$33,400	$18,500	$13,000
Correction of print errors detected prior to delivery	$29,750	$38,750	$33,750	$20,000	$10,000
Recalibration of equipment	$26,250	$37,500	$48,550	$20,000	$6,800
Production process breakdown (downtime)	$72,000	$63,750	$67,400	$30,750	$20,500
Rework of poor quality detected by clients after delivery	$53,560	$61,100	$51,975	$26,800	$10,500
Waste of materials for printing returned by clients	$54,640	$68,900	$53,525	$20,650	$11,500
	$348,400	$481,750	$532,490	$242,175	$117,800

1. 
   
2. You are a member of the management consultant team of this company. Ethan has required the team to give a feedback whether the suggested quality cost plan is in line with the company’s strategy and objective:
3. 
   
4. Prepare a graph that shows the trend on each quality cost category over the five years of the quality costs management program, use the graph to explain your findings