Quality Cost Report Bradshaw Company reported sales of $5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Vendor certification $43,500 Warranty 100,000 125,000 Rework Field testing 54,000 Quality training Process acceptance 56,500 40,000 75,000 Scrap Recalls 90,000 Product inspection 46,000 Returned goods 70,000 Required: 1. Prepare a quality cost report. Round percentage to two decimals. Bradshaw Company Quality Cost Report For the Year Ended June 30, 20X1 Percentage of Sales Quality Costs Prevention costs: Vendor certification Quality training % Appraisal costs: Field testing Process acceptance Product inspection Internal failure costs: Rework Scrap External failure costs: Warranty Recalls Returned goods Total quality costs 2. Failure costs are almost two-thirds of the total costs. This indicates that there is still ample opportunity for improving quality by investing more in prevention and appraisal activities. 3. Assuming sales of $5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales? Profits would increase by $ Feedback Check My Work In this problem you are given the quality costs. Enter the amounts in by category and calculate the subtotal. Compute each categories percentage using sales as the denominator. Select best terms to complete the sentences with regard to the company's quality performance. Review the "How to Prepare a Quality Cost Report" example in your text