Question

Nuke-It-Now manufactures microwave ovens. The following represents the financial information from one of its manufacturing plants for two years.

	Year 1			Year 2
Sales	$	3,420,000		$	3,990,000
Costs
Redesign process	$	30,000		$	37,100
Discard defective units		35,800			42,800
Training on equipment		247,000			201,000
Warranty claims		132,000			177,000
Contract cancellations		208,000			143,000
Rework		72,000			104,000
Preventive maintenance		143,000			116,000
Product liability claims		298,000			179,000
Final inspection		203,000			198,000

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: Total prevention costs $0 $0 Appraisal: 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