In 2013,Style,Inc AClassify Each Cost as Variable or Fixed with Respect to Management

In 2013,Style,Inc.,instituted a quality improvement program.At the end of 20X4,the management of the corporation requested a report to show the amount saved by the measures taken during the year.The actual sales and actual quality costs for 20X3 and 20X4 are as follows:
$\begin{array}{lrr}&20X3&20X4\\\text { Sales } & \$ 125,000 & \$ 150,000 \\\text { Scrap } & 3,750 & 3,750 \\\text { Rework } & 5,000 & 2,500 \\\text { Training program } & 1,250 & 1,500 \\\text { Consumer complaints } & 2,500 & 1,250 \\\text { Lost sales, incorrect labelling } & 2,000 &- \\\text { Test labour } & 3,000 & 2,000 \\\text { Inspection labour } & 6,250 & 6,000 \\\text { Supplier evaluation } & 3,750 & 3,250\end{array}$
a.Classify each cost as variable or fixed with respect to sales and compute the variable cost ratio for 2013.Be careful-costs may change because of quality improvement,not cost behaviour.
b.How much did profits increase because of quality improvements made in 2014,assuming all reductions in quality costs are attributable to quality improvements?
c.Prepare an interim trend quality costs report for Style,Inc.