Consider the following quality cost report:
|
Year 1
|
Year 2
|
Year 3
|
|
Prevention
|
$1,850
|
$1750
|
$1,625
|
|
Appraisal
|
$2,250
|
$2,300
|
$2,300
|
|
Internal failure
|
$2,300
|
$2,500
|
$2,700
|
|
External failure
|
$2,500
|
$2,700
|
$3,000
|
|
Total quality costs
|
$8,900
|
$9,250
|
$9,625
|
|
Total revenues
|
$135,000
|
$145,000
|
$152,000
|
Do you believe this firm's quality initiatives have been successful? Be sure to justify your opinion with specific information from the quality report.