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Year 1 $3,580,000 Year 2 $3,900,000 $ $ Sales Costs Redesign process Discard defective units Training on equipment Warranty claims Contract cancellations Rework Preventive maintenance

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Year 1 $3,580,000 Year 2 $3,900,000 $ $ Sales Costs Redesign process Discard defective units Training on equipment Warranty claims Contract cancellations Rework Preventive maintenance Product liability claims Final inspection 31,000 37,400 253,000 132,000 200,000 74,000 155,000 308,000 203,000 36,600 42,700 214,000 177,000 151,000 97,000 107,000 172,000 202,000 Required: Construct a cost of quality report for year 1 and year 2. (Input all amounts as positive values. Round percentage answers to 1 decimal place (i.e., 32.1).) NUKE-IT-NOW CORPORATION Cost of Quality Report Year 1 % Year 2 Sales revenue Prevention: $ 0 0 Total prevention costs Appraisal: 1 Internal failure: Total internal failure costs $ 0 $ 0 External failure: Total external failure costs $ 0 $ 0 Total costs of quality $ 0 0.0 $ 0 0.0

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