Answer:
a)
- Prevention costs: costs incurred in order to prevent failures or minimize defects, they include maintenance expenses = $11,000
-
Appraisal costs: costs incurred in order to make sure that the products meet quality standards and customers' expectations, they include inspection costs = $15,000
-
Internal failure costs: costs incurred due to faulty products or procedures that occur before any good is actually taken out of the facilities, they include scrap and rework ($10,600) and machine breakdown costs ($5,400) = $16,000
- External failure costs: costs incurred after the goods leave the facilities, they include warranty expenses ($34,000), product returns due to defects ($6,000) and lost sales due to low quality ($10,000) = $50,000
Quality cost report:
Prevention costs
- Machine maintenance expense $11,000 $11,000
Appraisal costs
- Inspection cost $15,000 $15,000
Internal failure cost :
- Scrap & rework $10,600
- Machine breakdown costs $5,400 $16,000
External failure costs :
- Warranty expense $34,000
- Product returns due to defects $6,000
- Estimated lost sales due to poor quality $10,000 <u>$50,000</u>
Total quality cost $92,000
b) What percentage of sales revenue is being spent on prevention and appraisal activities?
total sales revenue = $500,000
prevention and appraisal costs = $26,000
% = $26,000 / $500,000 = 5.2%
c) What percentage of sales revenue is being spent on internal and external failure costs?
internal and external failure costs = $66,000
% = $66,000 / $500,000 = 13.2%
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
The journal record is attached.
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet.
Answer:
The answers are economies of scale, natural monopolies, and lowered average fixed cost.
Explanation:
The explanations for some firms beahvior in determined markets are economies of scale, natural monopolies, and lowered average fixed cost.
Answer:
Ray calculated how much each seat cost to manufacture and set a wholesale price that covered expenses and earned a reasonable profit. After doing so, Ray developed a channel of distribution including wholesalers and retailers to get the theater seats to consumers.
Explanation:
Answer:
£.0.6875 per USD
Explanation:
PPP stands for purchasing power parities. It is actually the rate of currency conversion.
As per the given information, the price level recently increased by 20% in England while falling by 5% in the United States, so the net increase in the U.S. dollar would be (20+5)=25%.
This can be taken as that now 20% more pounds shall be needed to purchases the same U.S. goods.
Hence the new exchange rate would be:
= 1.25 x £0.55/$1 = £.0.6875 per USD
