Problem 8.5.xlsx
Costcutin Company
Total Sales $1,537,280 $933,600 $1,397,120
% of Quality Costs by Product
Quality Cost – A
Quality Cost – B
Quality Cost – C Product A.
Product B
Product C
External failure $96,848.64 $31,929.12 $16,765.44 30% 19% 10%
Internal failure $177,555.84 $52,094.88 $46,943.23 55% 31% 28%
$120,000.00
$140,000.00
$160,000.00
$180,000.00
$200,000.00
Quality Costs
Costs as % of Sales