WHOLE GRAPH

In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Costs (in thousands) Last This Year Year Inspection $ 900 $ 1,701 Quality engineering $ 270 675 Depreciation of test equipment $ 675 $ 270 Rework labor 990 $ 1,620 Statistical process control $ e $ 225 Cost of field servicing $ 1,350 $ 1,080 Supplies used in testing $ 45 $ 54 Systems development $ 630 $ gee Warranty repairs $ 3,825 $ 1,53e Net cost of scrap $ 810 $ 1, e8e Product testing $ 1, $1,350 Product recalls $ 3, 105 990 Disposal of defective products $ 720 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (ie 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Sales This Year Amount (in Percent of thousands) Sales Prevention costs: % + 0 0.00 0 0.00 Total prevention costs Appraisal costs 0 0.00 0 0.00 Total appraisal costs Internal failure costs: Total internal failure costs 0 0.00 0 0.00 0.00 0 Total prevention costs Appraisal costs 0.00 0 Total appraisal costs Internal failure costs: 0.00 0 0.00 0 0.00 Total internal failure costs External failure costs: 0 0.00 0 0.00 Total external failure costs Total quality cost 0.00