Calculate the percentage of each prevention and appraisal

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Reference no: EM13903419

Costs of quality. Scan It Company manufactures computer scanners. The following table presents financial information for two years.

	Year 1	Year 2
Sales	$2,000,000	$1,800,000
Quality Costs:
Scrap	15,000	16,000
Repair of returned goods	35,000	40,000
Dealing with customer complaints	23,000	28,000
Rework (goods spoiled during production)	150,000	150,000
Materials inspection	55,000	40,000

a. Classify the above items into prevention, appraisal, internal failure, or external failure costs.

b. Calculate the percentage of each prevention, appraisal, internal failure, and external failure cost to sales for Year 1 and Year 2.

Reference no: EM13903419

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