Internal Reports on Quality at the Acme Publishing Company Generated

question 76

Multiple Choice

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year:
$\begin{array}{ll}\text{Total sales}&\$ 1,000,000\\\text{Costs of quality:}&\\\text { Prevention } & 22,500 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000\end{array}$
Compute the costs of nonconformance as a percentage of total sales.

• A) 12.0%
• B) 5.4%
• C) 1.3%
• D) 10%

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Definitions:

Property Tax Rates

The rate at which property in a particular area is taxed.

Hobby Farms

Small-scale farms operated more for leisure and enjoyment than for profit, often focusing on the cultivation of food for the family or specialty crops.

Percent More

A term used to describe how much one quantity is larger than another as a percentage of the second quantity.

Increased By

A term used to indicate that a quantity is being added to, or grown in value or amount.