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The following information shows last year's quality related costs for the Kaeding Company. Total sales for the year were $130,000,000. Item Quality engineering Warranty claims

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The following information shows last year's quality related costs for the Kaeding Company. Total sales for the year were $130,000,000. Item Quality engineering Warranty claims Product liability lawsuits Research of customer needs Maintenance of test equipment Returned products Rework costs Quality training Process control monitoring Inspection of and testing of incoming materials Repair costs in the field Statistical process control Product recalls Waste Amount $624,000 3,016,000 5,889,000 117,000 442,000 1,547,000 1,612,000 195,000 1.261,000 481,000 1,079,000 325,000 2.613,000 936,000 481,000 Inspection of and testing of incoming materials Repair costs in the field Statistical process control Product recalls Waste Net cost of scrap Product quality audits Downtime due to defects Supplier certification What is the total cost of prevention? 1,079,000 325,000 2,613,000 936,000 806,000 637,000 208,000 78,000 1) $1,339,000 (2) $1,845,000 3) $2,821,000 4) $1,429,000

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