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11. Lorimer Company had sales of Php2,500,000 for last year. Data on quality-related costs for...

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Accounting

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11. Lorimer Company had sales of Php2,500,000 for last year. Data on quality-related costs for last year are as follows: Inspection Php 80,000 Scrap 10,000 Rework 45,000 Quality training 20,000 Warranty work 100,000 Customer complaints 30,000 A. Classify each of the quality-related costs as control (prevention and appraisal), internal failure, or external failure. B. What percentage of sales is accounted for by quality-related costs? C. If quality-related costs could be reduced to 2% of sales, by how much would Lorimer's profit increase

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