years. The following data are available: Compare the three years. What conclusions can you draw? Problems. 327 Sales Cost of Goods Sold Prevention Cost Appraisal Cost Internal Failure Cost External Failure Cost Two Years Ago Last Year This Year (8000) (8000) (8000) 1,352 1,529 1.688 1,105 1.200 1,360 10 50 40 100 100 50 150 150 45 80 20 340 155 80 380 Total COQ (BOTTOM LEFT) 26 Chapter 12: Quality Costs 4. Classify the following quality costs: Amount Cost Defective Product Returned by Customers Rework Rejected Outgoing Lot Freight for Defective Goods from Customer TQM Training Class for Operators Quality Engineers' Salary In-process Inspection Down-time Due to Rejected Parts Quality Audit of Supplier $10,500 2,500 450 3,000 12,000 5,600 4,500 1,500 The company has reason to believe that for every customer that returns a defective product, five others do not. Estimate the true external failure cost for the company