question 17-53, number 2 and 3

ated with the implementation of the new technology. What is the one that would justify the investment in the new technology? [LO 17-5) 17-53 Cost-of-Quality (COQ) Reporting CVI Inched November sales totaling $4,200,000 and incurred the following quality-related costs: $28,000 24,000 74,000 Spoiled work-in-process inventory disposal Downtime, due to quality problems Field test of new computer Support of a customer complaint department Product liability insurance Quality training Re-inspection Rework (labor and overhead) New vendor verification and facilities inspection Technical support provided to vendors Equipment inspection Test and inspection of purchased parts Warranty repairs 26,000 18,000 12,000 13,000 8,000 25,000 4,000 20,000 32,000 22,000 Required 1. Prepare a cost-of-quality (COD) report for November, with appropriate classifications. For each of the four major categories in your report, present total category cost as a percentage of total COQ for the period and as a percentage of sales. 2. Offer some observations regarding the data presented in your report, in terms of the process of managing and controlling quality costs. 3. What are the primary limitations of COQ reports, similar to the one you prepared? 0 1751 1754 Rolevant Cost Analysis Quality Improvements Destin Company produces water control valves