Anderson Company reported sales of \(\$ 5,000,000\) in \(20 X 5\). During the year, Anderson included the following quality costs:

Required:
1. Compute the quality cost as a percentage of total quality costs by category.
2. Compute the quality cost as a percentage of total sales by category.
3. Estimate the company's profit improvement (\$) if quality costs are reduced to \(10 \%\) of sales.
4. Comment on Anderson Company's quality cost distribution in 20X5.

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Appraisal costs..... .........$ 70,000 Prevention costs....... 140,000 Internal failure costs....... 210,000 External failure costs. 280,000 Total quality costs. .$700,000