Quality Costs, Excel LO7 Tanner Leathers implemented a quality control and improvement program in 20

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Quality Costs, Excel LO7

Tanner Leathers implemented a quality control and improvement program in 2012. The quality control manager, a daughter of the company’s president, developed the following table, which shows the components of quality cost as a percentage of the company’s sales for the last five years:

Year

Prevention

Detection

Internal Failure

External Failure

2012

3%

4%

9%

13%

2013

4

5

8

11

2014

5

6

6

8

2015

6

5

4

6

2016

7

2

1

2

Required

A.Prepare a graph that shows the trend for each quality cost category. To complete the graph in Excel, use the chart wizard and select “XY (scatter) graph with data points connected by lines” as the chart type. You should have one graph with four separate lines. Show the percentage of sales on the vertical axis and the year on the horizontal axis.

B.What does the graph tell you about the success of Tanner Leathers’s quality program?

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