x Returns - P... Quality Cost Report, Taguchi Loss Function Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 20x5, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related: 20x5 Sales (661,000 units o $100) Retesting $66,100,000 1,652,500 2,445,700 Rework Vendor certification 793,200 1,520,300 2,577,900 1,983,000 Consumer complaints Warranty Test labor Inspection labor Design reviews Required: 1,718,600 198,300 1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place it rounding is required. For example, 5.78% would be entered as "5.8" 1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.78% would be entered as "5.8". Oliver Company Quality Cost Report For the Year Ended December 31, 20x5 Quality Costs Total Quality Cost Percentage of Sales Prevention costs: Vendor certification Design reviews 9 Appraisal costs: Test labor % Inspection labor