Solution-Calculate category of quality costs

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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Calculate category of quality costs

Reference no: EM13511761

Reference no: EM13511761

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