Superior Corporation is considering spending the following a…
Superior Corporation is considering spending the following amounts on a new TQM program in 2023: Strength-testing one item from each batch 75,000 Training suppliers in TQM 30,000 Identifying preferred suppliers that commit to on-time delivery of perfect quality materials 60,000 Welsh Corporation expects the new program to save costs in 2023 through the following: Avoid lost profits from lost sales due to disappointed customers 90,000 Avoid rework and spoilage 45,000 Avoid inspection of raw materials 48,000 Avoid warranty costs 30,000 Requirements Prepare a cost of quality report in good form. (No percentages are needed) Should Superior Corporation implement the new quality program? Provide your reason. Discuss what type of costs a quality cost report track and what costs are traditionally excluded from the quality cost report. Identify the three types of opportunity costs of not implementing a quality cost program.