The Following Information Pertains to Harrison Corp What Percentage of Sales Are Quality Costs?
A)2

question 19

Multiple Choice

The following information pertains to Harrison Corp.for the current year: $\begin{array}{lr}\text { Sales } & \$ 3,000,000 \\\text { Internal failure costs } & 375,000 \\\text { External failure costs } & 150,000 \\\text { Appraisal costs } & 105,000 \\\text { Prevention costs } & 75,000 \\\text { Cost of goods sold } & 1,125,000\end{array}$
What percentage of sales are quality costs?

• A)2.5%
• B)6.0%
• C)15.0%
• D)23.5%

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