SE-5

Internal reports on quality at Lakelawn Press Company generated the following information for the School Division for the first three months of the year:

Total sales $50,000,000

Costs of quality:

Prevention: 523,000

Appraisal 77,000

Internal failure: 860,000

External failure 640,000

Compute the following. (round to two decimal places)

1. Total costs of quality as a percentage to sales.

2. Ratio of costs of conformance to total costs of quality.

3. Ratio of costs of nonconformance to total costs of quality

4. Costs of nonconformance as a percentage to total sales