Required:1. Prepare a simple quality cost report classifying costs by category.2

Required:1. Prepare a simple quality cost report classifying costs by category.2. Compute the quality-cost-to-sales ratio. Also compare the total quality costs with total profits. Should Wayne be concerned with the level of quality costs?3. Prepare a pie chart for the quality costs. Discuss the distribution of quality costs among the four categories. Are they properly distributed? Explain.4. Discuss how the company can improve its overall quality and at the same time reduce total quality costs.5. By how much will profits increase if quality costs are reduced to 2.5 percent of sales?