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thank you in advance Diego Fitness Enterprises was an early entrant into the field of producing workout monitoring equipment. With its commitment to uniquely designed
thank you in advance
Diego Fitness Enterprises was an early entrant into the field of producing workout monitoring equipment. With its commitment to uniquely designed equipment to meet the needs of demanding athletes, Diego led the field. Management focused on providing unique equipment quickly for the ever-expanding market. Unfortunately, managers paid little attention to the manufacturing process. Production quality declined and problems with defective units rose dramatically. Customers complained and comments abounded on various websites. Diego's response was to apologize and send out new units through its help desk. Diego knows that new competitors are entering the market and realizes it must strengthen its quality or watch its sales decline. Diego began and embarked on an intensive campaign to strengthen its quality control at the beginning of the current year. During this period, sales grew from $55 million last year to $100 million this year. Diego managers ask the accounting staff to prepare a Cost of Quality report from the information compiled below. Note that the information does not include lost sales due to its reputation for poor quality. Assignment Answer the following questions using the table below: 1. Prepare a quality cost report IN EXCEL for both 2019 and 2020in good form. Carry the percentage computations to two decimal places. You may not do the cost report in thousands, you must write out all of the zeros! 2. What information can you draw from the report? 3. List TWO questions you would ask as a result of viewing the cost report. Cost (in thousands) 2019 2020 Warranty repairs $4,000.00 $2,800.00 Rework labor $1,600.00 $1,800.00 $200.00 Cost of testing equipment $390.00 Product recalls $3,000.00 $500.00 Systems development $100.00 $680.00 Assignment Answer the following questions using the table below: 1. Prepare a quality cost report IN EXCEL for both 2019 and 2020in good form. Carry the percentage computatic two decimal places. You may not do the cost report in thousands, you must write out all of the zeros! 2. What information can you draw from the report? 3. List TWO questions you would ask as a result of viewing the cost report. Cost (in thousands) 2019 2020 $4,000.00 $2,800.00 Warranty repairs Rework labor Cost of testing equipment $1,800.00 $1,600.00 $200.00 $390.00 Product recalls $3,000.00 $500.00 Systems development $100.00 $680.00 Inspection $1,500.00 $2.770.00 $1,800.00 $1,300.00 Net cost of scrap Supplies used in testing Statistical process control $30.00 $40.00 $ - $270.00 Customer returns of defective goods $2,200.00 $200.00 $1,020.00 $1,650.00 Quality engineering Downtime due to quality problems $500.00 $1,000.00 Step by Step Solution
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