Figure 14-3 at the Beginning of the Year, Grant Company

question 91

Multiple Choice

Figure 14-3 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:

-Refer to Figure 14-3.If quality costs had been reduced to 2.5 percent of sales in the current year, profits would have increased by

• A) $255,000.
• B) $174,000.
• C) $91,500.
• D) $37,500.

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Definitions:

Universal Instantiation

A logical rule of inference that allows one to deduce a particular instance from a universal statement, essentially moving from a general statement to a specific example.

Existential Generalization

A logical inference rule stating that if something is true for some member of a domain, then it is true that there exists something in that domain for which the proposition holds.

Quantifier Negation

The process of changing the quantifier in a statement, such as from "all" to "not all," to negate its original meaning.

Universal Generalization

A principle of deductive reasoning that allows one to conclude that something is true for all cases after confirming it is true in every observed case.