Planet Company had total sales of $15,000,000 for the fiscal year ending on December 31, 20X1. Planet's costs of quality are as follows:

Calculate Planet's prevention cost for the year.

Question

Planet Company had total sales of $15,000,000 for the fiscal year ending on December 31, 20X1. Planet's costs of quality are as follows:
 
 Calculate Planet's prevention cost for the year.

Quizplus · Accepted Answer

Planet's prevention cost = Cost related to quality audits + Cost related to prototype inspection = $15,000 + $90,000 = $105,000

Planet Company Had Total Sales of $15,000,000 for the Fiscal