Voltswagon plc produces and sells cars. In the past, the company has been very successful, however, increased competition and complaints about car reliability have started to reduce company profits. A new Finance Director has recently hired a consultant to review the existing production processes. The consultant has identified the following areas for consideration: (i) Quality costs Balanced Scorecard REQUIRED: Please note: a maximum word count applies to parts (b), (c) and (d) of this question ONLY. There is no maximum word counts for part (a). (a) The following costs related to maintaining product quality were incurred during the financial year ended 31 December 2019: '000 % of sales (50m) 2% 1,000 400 200 300 0.8% 0.4% 0.6% 1,500 3% 1,100 2.2% Description 1. Costs of downtime, where staff were unable to work, due to the quality of supplies received into the business 2. Costs of re-work on faulty components before sale 3. Inspection of raw materials from external suppliers 4. Inspection of finished goods produced by Voltswagon plc 5. Handling of returns received from customers due to poor quality products received 6. Repairs of items returned under warranty (a period during which faulty products will be repaired for free) 7. Training of quality control inspectors who inspect the quality of items on the production line Regular maintenance costs for machines that produce component parts to ensure that faulty items are not produced 9. Product recalls, where a fault has been identified in a certain number of products and the customer needs to return their product in return for a replacement 10. Handling customer complaints 11. Supplier evaluation and selection reviews 12. Inspection of work in progress Total 300 0.6% 8. 200 0.4% 900 1.8% 1,800 100 200 8,000 3.6% 0.2% 0.4% 16% The following industry averages are available: Cost category Prevention costs Appraisal costs Internal failure costs External failure costs Industry average (% of sales) 3.4% 3.3% 2.5% 1.8% (i) Please note: the maximum word count for this requirement is 420 words Evaluate Voltswagon plc's costs of quality and explain how Voltswagon plc's costs of quality could result in the increase in customer complaints and decrease in company profits