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Prepare a cost of quality report for the company

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Reference no: EM132990776

Question 1: During the previous period, Jeff's Bikes incurs the following costs in a manufacturing department: cost of maintaining equipment, $5,750; cost of correcting defective goods from customers, $10,000; cost of rework, $12,000; cost of design engineering, $15,000; and cost of product inspections, $9,000. Prepare a cost of quality report for the company if total sales are $1,070,000. Also, determine if each of the costs would be considered value-added or non-value-added. Round percentages to one decimal place.

Reference no: EM132990776

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