Internal Reports on Quality at the Acme Publishing Company Generated

question 7

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:
$\begin{array}{ll}\text{Total sales}&\$ 1,000,000\\\text{Costs of quality:}&\\\text { Prevention } & 44,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000\end{array}$
Compute the total costs of quality as a percentage of sales.

• A) 2.4%
• B) 4.4%
• C) 12.6%
• D) 19.1%