Charles Berkle is the manager of Nogain Manufacturing and isinterested in doing a cost of quality analysis. The following costand revenue data are available for the most recent year endedDecember 31.

Sales revenue	$	250,000
Cost of goods sold		140,000
Warranty expense		18,000
Inspection costs		10,000
Scrap and rework		8,900
Product returns due to defects		6,000
Depreciation expense		10,000
Machine maintenance expense		1,800
Wage expense		35,000
Machine breakdown costs		4,000
Estimated lost sales due to poor quality		5,000

a. Classify each of these costs into the four quality costcategories and prepare a cost of quality report for Nogain.

b. What percentage of sales revenue is being spent onprevention and appraisal activities?

c. What percentage of sales revenue is being spent oninternal and external failure costs?

Classify each of theabove costs into the four quality cost categories and prepare acost of quality report for Nogain.

	NOGAIN MANUFACTURING Quality Cost Report For the Current Year Ended December 31 Prevention costs: $0 Appraisal costs: $0 Internal failure costs: $0 External failure costs: $0 Total quality costs $0

What percentage ofsales revenue is being spent on prevention and appraisalactivities? (Roundyour answer to 1 decimal place.)

	Costs as a Percentage of Sales %

What percentage ofsales revenue is being spent on internal and external failurecosts? (Roundyour answer to 1 decimal place.)

	Costs as a Percentage of Sales %