Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks. In May 2014, the company had sales of $895,000 and incurred the following costs of quality: Product design costs $ 8,600 Product recall costs 5,200 Product simulation costs 13,500 Product testing costs 3,500 Product warranty claims 2,000 Scrap and rework costs 3,000 The total costs of quality as a

percentage of sales were
A) 3.5%
B) 4.0%
C) 4.5%
D) 5.0%


B

Business

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