Ross Company implemented a quality improvement program and tracked the following for the five years:

 

Quality costs Actual sales costs as a percentage of sales

2009 500,000 2,000,000 25.00%

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%

 

1.Prepare a bar graph that reveals the trend in quality cost s a percentage of sales(time on the horizontial axis and percentages on the vertical).Comment on the message of the graph.

 

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%

2.Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you? 

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