Question One: Measuring and Managing Quality Costs: Manufacturer Over the next six months Martin identifies the following costs of quality: " Cost of replacement bikes provided under warranty, $5,000. Cost of bikes returned by customers and scrapped, $5,000. Sales commissions on faulty bikes returned by customers, $1,000. Contribution margin forgone on bikes returned by customers, $1,000. Rework on defective wheels, $8,000. Quality inspection in the goods receiving area, $15,000. Quality inspections during processing, $23,000. Laboratory testing on bikes and components, $13,000. Contribution margin forgone on lost future bikes sales, $5,000. Engineering costs to correct production line quality problems, $15,000. Lost contribution on machine downtime during correction of production line quality problems, $25,000. Operating an X-Ray machine to detect faulty welds, $15,000. Cost of repairs under warranty, $1,000. Cost of rewelding faulty joints discovered during processing, $19,000. Cost of quality training programs, $3,000. Inspection of bikes put into finished goods warehouse, $16,000. Cost of faulty components that are scrapped, $4,000. Cost of faulty bikes that are scrapped after finished goods inspection, $10,000. During this period, total manufacturing costs were $600,000. Required: 1. Prepare a Cost Quality Report. 2. Use the information in this report to suggest ways in which the company could reduce its cost of quality