Question #4

Consider the following quality cost report:

	Year 1	Year 2	Year 3
Prevention	$4,500	$5,700	$5,700
Appraisal	$5,400	$5,400	$5,200
Internal failure	$5,800	$5,800	$5,100
External failure	$6,500	$6,200	$5,700
Total quality costs	$22,200	$23,100	$21,700
Total revenues	$1,600,000	$1,700,000	$1,900,000

Do you believe this firms quality initiatives have been successful? Be sure to justify your opinion with specific information from the quality report.