Question No-1

Ventura Company; Quality Cost Report For Years 2017 and 2018
	2017		2018
	Amount	Percentage	Amount	Percentage
Prevention cost	650,000	1.30%	1,000,000	2.00%
Appraisal cost	1,200,000	2.40%	1,500,000	3.00%
Internal failure cost	2,000,000	4.00%	3,000,000	6.00%
External failure cost	5,150,000	10.30%	2,000,000	4.00%
Total Quality Costs	9,000,000	18.00%	7,500,000	15.00%
Sales	50,000,000		50,000,000

a)Prepare a written evaluation report with graph (use percentage column in the graph) for the Ventura Company on the basis of following quality costs report. This evaluation should discuss the distribution of quality costs in the company, changes in the distribution over the last year, and any other information you believe would be useful to management.