At the Beginning of the Year, Grant Company Initiated a Quality

At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
$$\begin{array} { l r r } & \text { Preceding Year } & \text { Current Year } \\\text { Sales } & \$ 3,000,000 & \$ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product waranty } & 105,000 & 82,500\end{array}$$
-Refer to the figure.If quality costs had been reduced to 2.5 percent of sales in the current year,by how much would profits have increased?

A) $37,500
B) $91,500
C) $174,000
D) $255,000