The Following Information Pertains to Rudy Company for 2014 Calculate by How Much Profits Would Increase If Quality Costs

question 68

Essay

The following information pertains to Rudy Company for 2014:
$\begin{array}{lr}\text { Sales } & \$ 10,000,000 \\\text { Internal failure costs } & 300,000 \\\text { External failure costs } & 200,000 \\\text { Appraisal costs } & 125,000 \\\text { Prevention costs } & 50,000 \\\text { Cost of goods sold } & 5,000,000\end{array}$
Calculate by how much profits would increase if quality costs were reduced to 2.5 percent of sales.

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Definitions:

Diuretics

Medications or substances that promote the excretion of urine, used to manage fluid balance.

Stress Incontinence

A condition characterized by the involuntary leakage of urine in response to physical activities that increase abdominal pressure, such as coughing, sneezing, or exercising.

Distension

The condition of being stretched, inflated, or larger than normal, often referring to the bloating of the abdomen.

Catheter

A flexible tube inserted into the body for removing fluids or introducing medication directly into specific areas, such as the bladder.