The Following Information Pertains to James Adams Corp Quality Costs Are What Percentage of Sales?
A)16

Multiple Choice

The following information pertains to James Adams Corp. for the current year: $$\begin{array} { l r } \text { Sales } & \$ 3,125,000 \\\text { Internal failure costs } & 450,000 \\\text { External failure costs } & 180,000 \\\text { Appraisal costs } & 126,000 \\\text { Prevention costs } & 90,000 \\\text { Cost of goods sold } & 1,350,000\end{array}$$ Quality costs are what percentage of sales?

A) 16.0%
B) 27.1%
C) 7.0%
D) 3.0%