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Trend, Long-Range Performance Report In 20x4, Tru-Dee Frozen Desserts, Inc.. instituted a quality improvement program. At the end of 20x5, the management of the

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Trend, Long-Range Performance Report In 20x4, Tru-Dee Frozen Desserts, Inc.. instituted a quality improvement program. At the end of 20x5, the management of the corporation requested a report to show the amount saved by the measures tak during the year. The actual sales and quality costs for 20x4 and 20x5 are as follows 20x4 20x5 Sales Sop $600,000 $600,000 15,000) 15,000 Rework 20,000 10,000 Training program 5,000 6,000 Consumer complaints 10,000 5,000 Lost sales, incorrect labeling 8,000 0 12,000 1,000 Inspection labor Supplier evaluation 25,000 15,000 24.000 13,000 Tru-Deine's management believes that quality costs can be reduced to 2.5 percent of sals within the next five years. At the end of 20 Tu Dete's sales are projected to grow to $75,000. The project relative distribution of quality costs at the end of 20x9 is as follows Scrap 150 20 Supplier valuation 25 Test labor 25 Impection box 15 Total quality costs 300 Previous Next

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