Solution-How much profits increase because of quality

How much profits increase because of quality improvements

Reference no: EM13512982

In 19x9, Allison Foods Company instituted a quality improvement program. At the end of 19x9, 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 19x8 and 19x9 were:

	19x8	19x9
Sales	$500,000	$600,000
Scrap	15,000	15,000
Rework	20,000	10,000
Training program	5,000	6,000
Consumer complaints	10,000	5,000
Lost sales, incorrect labeling	8,000	----
Test labor	12,000	8,000
Inspection labor	25,000	24,000
Supplier evaluation	15,000	13,000

Prepare the one-year trend report that corporate management requested. How much did profits increase because of quality improvements made in 19x9 (assuming that all reductions in quality costs are attributable to quality improvements)?

Reference no: EM13512982

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How much profits increase because of quality improvements

Reference no: EM13512982

Reference no: EM13512982

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