The Following Information Pertains to Bartolo Company for the Current

Essay

The following information pertains to Bartolo Company for the current year: $\begin{array}{lr}\text { Sales } & \$ 12,000,000 \\\text { Internal failure costs } & 400,000 \\\text { External failure costs } & 300,000 \\\text { Apprai sal costs } & 225,000 \\\text { Prevention costs } & 150,000 \\\text { Cost of goods sold } & 6,500,000\end{array}$
Required:
Calculate by how much profits would increase if quality costs were reduced to 2.0 percent of sales.