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Ross Co. implemented a quality improvement program...

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Ross Co. implemented a quality improvement program and tracked the following for the five years: Quality cost Actual Sales Costs as a percentage of sales 2009 500,000 2,000,000 25% 2010 495,000 2,200,000 22.50 2011 450,000 2,400,000 18.75 2012 434,000 2,480,000 17.50 2013 400,000 3,200,000 12.50 By cost category as a percentage of sales for the same period of time: Prevention Appraisal Internal Fail External Failure 2009 2.50% 2.50% 7.50% 12.50% 2010 3.75 3.00 5.00 10.75 2011 3.75 3.75 3.75 7.50 2012 5.00 3.75 3.13 5.63 2013 6.38 3.00 2.50 1.90 1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical) Comment on the message of the graph. 2.Prepare a bar graph for each cost category as a percentage of sales. What does the graph tell you? 3. What if management would like to have the trend in relative distribution of quality costs? Express this as a bar graph and comment on its significance.

 

Paper#9985 | Written in 18-Jul-2015

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