Textbook Problem

Bradshaw Company reported sales of $5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported:

Required:

1. 1. Prepare a quality cost report.
2. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution.
3. 3. Assuming sales of $5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?