Randall Corporation Reported the Following Sales and Quality Costs for the Past

Randall Corporation reported the following sales and quality costs for the past four years.Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program.
$\begin{array}{rrr}&&\text { Quality Costsas }\\\text { Year } & \text { Sales Revenues } & \text { Percent of Revenues }\\\hline1 & \$ 2,000,000 & 23.0 \% \\2 & 2,200,000 & 20.0 \% \\3 & 2,200,000 & 16.0 \% \\4 & 2,400,000 & 12.0 \%\end{array}$
a.Compute the quality costs for all four years.
b.How much did net income increase from Year 1 to Year 2 because of quality improvements? From Year 2 to Year 3? From Year 3 to Year 4?
c.The management of Randall Corporation believes it is possible to reduce quality costs to 2.5 percent of sales.Assuming sales will continue at the Year 4 level,calculate the additional profit potential facing Randall.