At the Beginning of a Year, Sighma Solutions Company Initiated

Multiple Choice

At the beginning of a year, Sighma Solutions Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current year: $$\begin{array} { l r } \text { Sales } & \$ 1,200,000 \\\text { Quality training } & 24,000 \\\text { Quality engineering } & 6,000 \\\text { Scrap } & 20,000 \\\text { Rework } & 18,000 \\\text { Product inspection } & 2,000 \\\text { Product warranty } & 14,000\end{array}$$ Which of the following expresses the prevention costs as a percentage of sales? (Round to two decimal places.)

A) 7.00%
B) 3.83%
C) 5.33%
D) 2.50%