The Following Information Pertains to Molotov, Inc Quality Costs Are What Percentage of Sales?
A)3

Multiple Choice

The following information pertains to Molotov, Inc., for the current year: $$\begin{array} { l r } \text { Sales } & \$ 20,000,000 \\\text { Internal failure costs } & 600,000 \\\text { External failure costs } & 400,000 \\\text { Appraisal costs } & 250,000 \\\text { Prevention costs } & 100,000 \\\text { Cost of goods sold } & 10,000,000\end{array}$$ Quality costs are what percentage of sales?

A) 3.00%
B) 5.00%
C) 6.25%
D) 6.75%