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Hartness Company's quality cost report is to be based on the following data:
Depreciation of test equipment
$75,000
Rework labor and overhead
$11,000
Quality circles
$46,000
Quality training
$94,000
Test and inspection of incoming materials
$64,000
Product recalls
$71,000
Net cost of scrap
$12,000
Re-entering data because of keying errors
$52,000
Cost of field servicing and handling complaints
$25,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.
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Currently the total cost is given by TC = 100 + 10Q +Q^2 for sale shoe manufacturing company. The demand equation is given by P =-5Q +130.
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