Consider the Following Data for Sue Company

Essay

Consider the following data for Sue Company:

Compute the following quality ratios for Sue Company:
a.Total costs of quality as a percentage of sales
b.Ratio of costs of conformance to total costs of quality
c.Ratio of costs of nonconformance to total costs of quality
d.Costs of nonconformance as a percentage of sales
Preliminary calculations:
Cost of conformance: $800 + $1,000 = $1,800
Cost of nonconformance: $400 + $600 = 1,000
Total costs of quality $2,800