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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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