The Following Information Pertains to Aquamarine, Inc If Quality Costs Were Reduced to 2 Percent of Sales

question 56

Multiple Choice

The following information pertains to Aquamarine, Inc., for the current year: $$\begin{array} { l r } \text { Sales } & \$ 1,500,000 \\\text { Internal failure costs } & 150,000 \\\text { External failure costs } & 90,000 \\\text { Appraisal costs } & 50,000 \\\text { Prevention costs } & 30,000 \\\text { Cost of goods sold } & 600,000\end{array}$$ If quality costs were reduced to 2 percent of sales, profits would increase by:

• A)$350,000.
• B)$210,000.
• C)$30,000.
• D)$290,000.

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Definitions:

Job Performance

Job performance refers to the effectiveness and efficiency with which an employee completes their work tasks and meets the objectives and expectations of their role.

Big Five

The Big Five is a model that outlines five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Nomothetic Approach

The nomothetic approach in psychology aims to establish general laws and principles that apply to all individuals, often by studying large groups and using statistical analyses.

Cardinal Traits

Dominant personality traits that influence most of an individual's behaviors and attitudes, forming a pivotal aspect of their personality.