Calculate category of quality costs

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Reference no: EM13511761

The following information pertains to Omni, Inc., for 19x8:

Sales

$30,000,000

External failure costs

900,000

Internal failure costs

1,800,000

Prevention costs

400,000

Appraisal costs

600,000

1. Calculate each category of quality costs as a percentage of sales.

2. Calculate total quality costs as a percentage of sales.

3. If quality costs were reduced to 2.5 percent of sales, determine the increase in profit that would result.

Reference no: EM13511761

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