NUBD Co. has the following quality costs for the period: Testing Rework Training Product liability insurance Quality training Customer surveys Reinspection and retesting Warranty repairs Total quality...


If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits?



A. decrease by P25,000



B. increase by P268,000



C. decrease by (P293,000)



D. increase by P25,000


NUBD Co. has the following quality costs for the period:<br>Testing<br>Rework<br>Training<br>Product liability insurance<br>Quality training<br>Customer surveys<br>Reinspection and retesting<br>Warranty repairs<br>Total quality costs<br>P60,000<br>27,500<br>45,000<br>35,000<br>43,000<br>15,000<br>17,500<br>50,000<br>P293.000<br>Sales for 2021 is P1,000,000.<br>

Extracted text: NUBD Co. has the following quality costs for the period: Testing Rework Training Product liability insurance Quality training Customer surveys Reinspection and retesting Warranty repairs Total quality costs P60,000 27,500 45,000 35,000 43,000 15,000 17,500 50,000 P293.000 Sales for 2021 is P1,000,000.

Jun 10, 2022
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