Rebecca's Pottery Loft makes the variety of handmade pottery items. She has asked for your advice upon one of the items manufactured: a clay pelican. The following information is provided:
Number of defective pelicans - 1,100
Number of pelicans returned - 150
Number of pelicans reworked- 200
Profit per defect-free pelican- $10.00
Processing cost of a returned pelican- $20.00
Profit per defective pelican- $5.00
Cost to rework defective pelican- $4.00
Total appraisal costs- $3,400
Total prevention costs- $6,000
A- Compute the total profits lost because Rebecca sold defective pelicans.
B- Compute the rework costs.
C- Compute the cost of processing customer returns.
D- Compute the total failure cost.
E- Compute the total quality cost.