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At the Beginning of the Year, Grant Company Initiated a Quality

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At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
 Preceding Year  Current Year  Sales £3,000,000£3,000,000 Quality training 3,0004,500 Material inspections 7,50012,000 Scrap 60,00045,000 Rework 120,00075,000 Product inspection 15,00030,000 Product warranty 105,00082,500\begin{array}{lrr}&\text { Preceding Year }&\text { Current Year }\\\text { Sales } & £ 3,000,000 & £ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product warranty } & 105,000 & 82,500\end{array}
-Refer to Figure 21-8. As a result of quality improvements, profits have increased by

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