The new engine project has further highlighted quality as a critical success factor for P&W. Engine quality is important for safe travel, and hence, the tolerance for errors and defects should be essentially zero. As part of the focus to regain customer confidence, the CEO has asked the accounting department to gather data for analysing quality costs. $'000 Repairs and replacements under customer warranties 334,500 Customer relationship management - complaint handling 84,000 Performance testing done at final assembly 160,000 Performance testing of subcomponents from suppliers 40,000 Costs of re-inspection after repairs 145,000 Quality control training 15,000 Maintenance of inspection equipment 50,000 Purchase of higher quality raw materials 130,000 Total revenue for the current year 17,250,000 ( b ) With available information, prepare a cost of quality report for the CEO. Where necessary, explain your cost categorisation. Evaluate the relative importance of each cost category to P&W. (16 marks) (c) The CEO is surprised by how few cost items were identified for the cost of quality report. In particular, the CEO is concerned about missing items under the internal failure category. Suggest two (2) more items that the accounting department can look into including for this category. (4 marks) (d) Explain to the CEO the trade-offs between using cost of quality and non-financial measures of quality to manage P&W's TOM initiative. (6 marks)