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The Gorilla Manufacturing Company of Pittsburg, Kansas, recently studied its expenditures and losses relative to quality for the month of October. The company found that

The Gorilla Manufacturing Company of Pittsburg, Kansas, recently studied its expenditures and losses relative to quality for the month of October. The company found that it had lost $300,000 in scrap and rework. It had spent $40,000 on inspection and $25,000 in prevention-related activities. Compute the ratio of failure costs to the total quality costs.
 

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