Consider the following quality cost report:
|
Year 1
|
Year 2
|
Year 3
|
|
Prevention
|
$1,775
|
$1,650
|
$1,650
|
|
Appraisal
|
$2,500
|
$2,500
|
$2,500
|
|
Internal failure
|
$2,400
|
$2,600
|
$2,900
|
|
External failure
|
$2,500
|
$2,900
|
$3,300
|
|
Total quality costs
|
$9,175
|
$9,650
|
$10,350
|
|
Total revenues
|
$400,000
|
$420,000
|
$445,000
|
Do you believe this firm's quality initiatives have been successful? Be sure to justify your opinion with specific information from the quality report.