At the beginning of the year, Devonshire Company 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:

	Preceding Year	Current Year
Sales	$2,400,000	$2,400,000
Quality training	30,000	48,000
Material inspections	7,000	8,000
Scrap	48,000	30,000
Rework	60,000	48,000
Product inspection	10,000	12,000
Product warranty	36,000	24,000

For the current year, internal failure costs are what percentage of sales?

a.1.25%

b.3.25%

c.4.25%

d.2.00%