Yedder Enterprises was a pioneer in designing and producing precision surgical lasers. Yedder's product was brilliantly designed, but the manufacturing process was neglected by management; consequently, quality problems have been chronic. When customers complained about defective units, Yedder would simply send out a repair person or replace the defective unit with a new one. Recently, several competitors have come out with similar products without Yedder's quality problems, and Yedder's sales have consequently declined. To remedy the situation, Yedder embarked on an intensive campaign to strengthen its quality control at the beginning of the current year. These efforts met with some successthe downward slide in sales was reversed, and sales grew from $95 million last year to $100 million this year. To help monitor the company's progress. costs relating to quality and quality control were compiled for last year and for the first full year of the quality campaign this year. The costs, which do not include the lost sales due to a reputation for poor quality, appear below: Costs (in thousands) Last Year This Year Product recalls $3,566 $ 699 Systems development 126 689 Inspection 1,?66 2,779 Net cost of scrap 866 1,399 Supplies used in testing 36 49 Warranty repairs 3,366 2,899 Rework labour 1,466 1,699 Statistical process control 6 279 Customer returns of defective goods 3,266 299 Cost of testing equipment 23"6 399 Quality engineering 1,686 1,659 Downtime due to qualityr problems 666 1,199 Required: 1. Prepare a quality cost report for both this year and last year. [Round your percentage answers to 2 decimal places.) _-I--I % % Total prevention cost 0 0.00 0 0.00 E Appraisal costs: Total appraisal cost Internal failure costs: Total internal failure cost 0. 00 I 0 External failure costs: I Prevention costs: Cost of testing equipment Customer returns of defective goods Downtime due to quality,r problems Inspection Net cost of scrap Total appraisal cost Total internal failure cost External failure costs: Total external failure cost Total quality cost Quality Cost Report (in thousands of dollars) Last Year This Year Amount Percent Amount Percent Prevention costs % o Product recalls Quality engineering 0 0.00 0.00 Rework labour Statistical process control Supplies used in testing Total appraisal cost 0 0.00 0 0.00 Internal failure costs: Total internal failure cost 0 0.00 0 0.00 External failure costs: Total external failure cost 0 0.00 0 0.00 Total quality cost $ 0 $ 0 %Quality Cost Report (in thousands of dollars) Last Year This Year Amount Percent Amount Percent Prevention costs: Rework labour Statistical process control 0 0.00 0 0.00 Supplies used in testing Systems development Warranty repairs Total appraisal cost 0 0.00 0 0.00 Internal failure costs: Total internal failure cost 0 0.00 0 0.00 External failure costs: Total external failure cost 0 0.00 0 0.00 Total quality cost S O $ 02. Prepare a bar graph showing the distribution of the various quality costs by category. (Use the shader tool to show the costs by category. This will place a rectangle on the graph. Click and drag each end points of the shaded area until the rectangle highlights to desired region.) Prevention - Quality Costs (in thousands) Last year 18000 16000 Appraisal Last year 14000 13400 12000 Internal failure - Last 10000 year 9800 8000 External failure - Last 6000 year 5800 4000 Prevention - 3200 This year 2600 2000 Appraisal - 1200 This year Last Year This year Internal failure - This year -O2. Prepare a bar graph showing the distribution of the various quality costs by category. (Use the shader tool to show the costs by category. This will place a rectangle on the graph. Click and drag each end points of the shaded area until the rectangle highlights to desired region.) - HonuaAal- Last year Quality Costs (in thousands) Appraisal - 18000 Last year 16000 14000 Internal 13400 failure - Last year 12000 10000 External 9800 failure - Last 8000 year 6000 5800 Prevention - This year 4000 3200 2600 Appraisal- This year 2000 1200 Internal failure - This Last Year This year year O External failure - This yearPrevention - Quality Costs as a Percentage of Sales Last year 18.0% 16.0% Appraisal - Last year 14.0% 13.4% 12.0% Internal failure - Last 10.0% year -O 9.8% 8.0% External failure - Last 6.0% year 5.8% 4.0% Prevention - 3.2% This year 2.6% 2.0% Appraisal - 1.2% This year Last Year This year Internal failure - This year