If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? * 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. decrease by P25,000 O increase by P268,000 decrease by (P293,000) increase by P25,000
If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? * 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. decrease by P25,000 O increase by P268,000 decrease by (P293,000) increase by P25,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 41E: Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1),...
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