At the Beginning of the Year, Marinov Corporation Initiated a Quality

Multiple Choice

At the beginning of the year, Marinov Corporation 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 and preceding years: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Sales } & \$ 2,000,000 & \$ 2,000,000 \\\text { Quality training } & 2,000 & 3,000 \\\text { Packaging inspections } & 5,000 & 8,000 \\\text { Downtime } & 40,000 & 30,000 \\\text { Reinspection } & 80,000 & 50,000 \\\text { Product inspection } & 10,000 & 20,000 \\\text { Product liability } & 70.000 & 55,000\end{array}$ For the current year, appraisal costs are what percentage of sales?

A) 1.40%
B) 1.00%
C) 0.14%
D) 0.40%