Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Last Year This Year Prevention costs $ 371,300 $ 656,500 Appraisal costs $ 471,700 $ 599,500 Internal failure costs $ 726,800 $ 470,000 External failure costs $ 1,155,000 $ 646,000

a) For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.

b) Calculate the change in total cost of quality over the two-year period.

c) Is performance trending in a favorable or unfavorable direction?