Prepare the one-year trend report that corporate management


In 19x9, Allison Foods Company instituted a quality improvement program. At the end of 19x9, the management of the corporation requested a report to show the amount saved by the measures taken during the year. The actual sales and (actual quality costs for 19x8 and 19x9 were:


19x8

19x9

Sales

$500,000

$600,000

Scrap

15,000

15,000

Rework

20,000

10,000

Training program

5,000

6,000

Consumer complaints

10,000

5,000

Lost sales, incorrect labeling

8,000

----

Test labor

12,000

8,000

Inspection labor

25,000

24,000

Supplier evaluation

15,000

13,000

Prepare the one-year trend report that corporate management requested. How much did profits increase because of quality improvements made in 19x9 (assuming that all reductions in quality costs are attributable to quality improvements)?

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Cost Accounting: Prepare the one-year trend report that corporate management
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