At the beginning of the year, Andrew 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: If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by

A) £110,000.
B) £108,400.
C) £103,200.
D) £100,200.

Question

At the beginning of the year, Andrew 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: If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by

A) £110,000. 
B) £108,400. 
C) £103,200. 
D) £100,200.

Quizplus · Accepted Answer

The Answer of At the beginning of the year, Andrew 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: If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by

A) £110,000. 
B) £108,400. 
C) £103,200. 
D) £100,200.

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