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You are given the following environmental quality-related costs: Employee training Product design Supplier certification Process inspection Depreciation-pollution-control equipment Maintain pollution-control equipment clean up polluted lake Restore land after use Property damage claim $ 180,000 220,000 80,000 360,000 480,000 280,000 580,000 780,000 680,000 Required: 1. Prepare a cost-of-quality (COQ) report of environmental management for the year. Determine subtotals for each of the four reporting categories, and express each subtotal as a percentage of total operating expenses ($10,000,000) for the year. (Hint. Classify the pollution-control costs as internal failure costs, under the assumption that the process pollutes and that the pollution-control equipment used by the company controls the release of pollutants into the environment.) (Round your percentage answers to 1 decimal place.) Cost-of-Quality (COD) Report Amounts Subtotals % of Total Operating Cost Prevention costs: $ Employee training Product design Supplier certification 180,000 220,000 80,000 $ 480,000 4.8% Appraisal costs: Process inspection $ % Internal failure costs: Depreciationpollution-control equipment Maintaining pollution-control equipment $ 0 % External failure costs: Property-damage claim $ 0 % Totals $ 480,000 4.8 %

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