In 2014, Exceptional Foods instituted a quality improvement program. At the end of 2015, 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 2014 and 2015 are as follows:
Exceptional's management believes that quality costs can be reduced to 2.5 percent of sales within the next five years. At the end of Year 2015, Exceptional's sales are projected to have grown to $1,500,000. The relative distribution of quality costs at the end of Year 2015 is as follows:
Required:

Question

In 2014, Exceptional Foods instituted a quality improvement program. At the end of 2015, 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 2014 and 2015 are as follows:
  Exceptional's management believes that quality costs can be reduced to 2.5 percent of sales within the next five years. At the end of Year 2015, Exceptional's sales are projected to have grown to $1,500,000. The relative distribution of quality costs at the end of Year 2015 is as follows:
  Required:

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The Answer of In 2014, Exceptional Foods instituted a quality improvement program. At the end of 2015, 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 2014 and 2015 are as follows:
  Exceptional's management believes that quality costs can be reduced to 2.5 percent of sales within the next five years. At the end of Year 2015, Exceptional's sales are projected to have grown to $1,500,000. The relative distribution of quality costs at the end of Year 2015 is as follows:
  Required:

In 2014, Exceptional Foods Instituted a Quality Improvement Program