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

question 143

Multiple Choice

At the beginning of the year, Andrew 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:
$\begin{array}{lrr} &\underline{\text {Preceding Year}}& \underline{\text {Current Year}}\\\text { Sales } & \$ 2,400,000 & \$ 2,400,000 \\\text { Quality training } & 30,000 & 48,000 \\\text { Material inspections } & 7,000 & 8,000 \\\text { Scrap } & 48,000 & 30,00 \\\text { Rework } & 60,000 & 48,000 \\\text { Product inspection } & 10,000 & 12,000 \\\text { Product warranty } & 36,000 & 24,000\end{array}$
-Refer to the figure.For the current year,what percentage of sales are prevention costs?

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