The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The activity analysis revealed the following:

$\backslash$table$[[$Activities$,$Activity Cost$],[$Correcting invoice errors,$$8,500],[$Disposing of income materials with poor quality,$16,000],[$Disposing of scrap,$28,500],[$Expediting late production,$21,500],[$Final inspection,$19,000],[$Inspecting incoming materials,$5,000],[$Inspecting work in process,$25,000],[$Preventive machine maintenance,$15,000],[$Producing product,$95,500],[$Responding to customer quality complaints,$15,000],[$Total$,249,000]]$

The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap.

a$.$ Prepare a Pareto chart of the company activities.

b$.$ Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality $($producing product$).$ Classify the activities into value$-$added and non$-$value$-$added activities.

c$.$ Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. d$.$

Determine the percentages of total costs that are value$-$added and non$-$value$-$added.

e$.$ Interpret the information.