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: Total sales $1,000,000 Costs of quality: Prevention 22,500 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the costs of nonconformance as a percentage of total sales
a. 12.0%
b. 5.4%
c. 1.3%
d. 10%
D
You might also like to view...
Explain why you agree or disagree with each of the following statements:
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $4,000Net sales: $80,000Net purchases: $78,000The company's gross margin ratio is 25%. Using the gross profit method, the cost of goods sold would be:
A. $63,000. B. $58,500. C. $19,500. D. $60,000. E. $20,000.
ABC, Inc., is a small clothing manufacturer that produces shirts and pants using two resources: sewing machine hours and cutting machine hours. The production manager can schedule up to 240 hours of sewing machine time and up to 150 hours of cutting machine time. Production of one shirt requires 3 hours of sewing time and 1 hour of cutting time. Each pair of pants requires 2 hours of sewing time and 1.5 hours of cutting time. Each shirt yields a profit of $5, and each pair of pants generates a $6 profit. The objective is to maximize profits. Which of the following is the decision variable for the LP formulation?
a. total revenue generated b. number of sewing hours and number of cutting hours required c. number of shirts and number of pairs of pants to be produced d. total production time
The seller's right to cure a defective tender means that the seller will be given a second chance to make a proper tender of conforming goods
Indicate whether the statement is true or false