The following information pertains to Bartolo Company for the current year: $\begin{array}{lr}
\text { Sales } & \$ 12,000,000 \
\text { Internal failure costs } & 400,000 \
\text { External failure costs } & 300,000 \
\text { Apprai sal costs } & 225,000 \
\text { Prevention costs } & 150,000 \
\text { Cost of goods sold } & 6,500,000
\end{array}$
Required:
Calculate by how much profits would increase if quality costs were reduced to 2.0 percent of sales.

Question

The following information pertains to Bartolo Company for the current year: $\begin{array}{lr}
\text { Sales } & \$ 12,000,000 \
\text { Internal failure costs } & 400,000 \
\text { External failure costs } & 300,000 \
\text { Apprai sal costs } & 225,000 \
\text { Prevention costs } & 150,000 \
\text { Cost of goods sold } & 6,500,000
\end{array}$ 
Required:
Calculate by how much profits would increase if quality costs were reduced to 2.0 percent of sales.

Quizplus · Accepted Answer

The Answer of The following information pertains to Bartolo Company for the current year: $\begin{array}{lr}
\text { Sales } & \$ 12,000,000 \
\text { Internal failure costs } & 400,000 \
\text { External failure costs } & 300,000 \
\text { Apprai sal costs } & 225,000 \
\text { Prevention costs } & 150,000 \
\text { Cost of goods sold } & 6,500,000
\end{array}$ 
Required:
Calculate by how much profits would increase if quality costs were reduced to 2.0 percent of sales.

The Following Information Pertains to Bartolo Company for the Current