Quality Cost Report Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Discounts due to defects $100,000 Retesting 30,000 Vendor certification 14,000 Rework 120,000 Marketing research 6,000 Process acceptance 14,000 Field testing 16,000 Product liability 200,000 Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round your percentages to two de Loring Company Quality Cost Report For the Year Ended 20X1 Loring Company Quality Cost Report For the Year Ended 20X1 Percentage of sales Quality Costs Prevention costs: Marketing research 6,000 14,000 X. % Vendor certification Appraisal costs: Field testing 16,000 14,000 Process acceptance Internal failure costs: Rework 120,000 30,000 Retesting External failure costs: Discounts due to defects Product liability 100,000 200,000 Total quality costs 500,000 20.83 % What message does the cost report provide