Q 8. 5 of 11 75% 3. Laundry Manufacture and Supply make large washing machines for industrial use e.g. hospitals, work places providing protective clothing for safety or hygiene. The company is concerned that a number of units have to be reworked and others have to be mended at the customer's premises within the guarantee period. They wish to investigate the situation. The following data is available for the 6 months from 1" October 2021 to 31" March 2022 Units made and sold (sales price $2,000 per machine) 240,000 units Average contribution per washing machine 21,400 Units reworked in house (cost per rework $100 per unit) 7,200 units Preventive maintenance (840 per hour) 6,240 hours Units repaired on customers' premises under guarantee ($1,200 10,000 units per repair) MICS Reviewing Suppliers (E80 per hour) 1.200 hours OCI Incoming material and component inspection (E30 per hour) 30,000 hours Units scrapped before sale 1,600 units Manufacturing inspection hours ($40 per hour) 432,000 hours Cost of Customer support per repair at customer premises E360 6 months Production supervision E180,000 6 months staff training costs E240,000 sses Product testing costs E108,000 3 ho Lost Sales due to poor reputation 10,000 units stion Required a) Provide a cost of quality report for the six months, classified into appropriate categories. Show each quality cost as a percentage of turnover. (10 marks) que b) Comment on the information shown in the report. (4 marks) are re as Page 5 of 11 16:42 A W