D. Cost of Quality. A quality improvement program is very costly to draw up and carry out across a corporation. Why would it be imperative for Drifblim Fine Furniture Inc to implement one considering the four key cost of quality areas? Explain.

Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures are its best seller. The normal selling price of a piece of sculpture is P3,000. Drifblim has total assets amounting to P2,500,000 and liabilities of P1,500,000. Cost structure of the firm: - Fixed Costs: producing and marketing their pieces brass of sculptures is P500,000 Variable costs per unit are the manufacturing costs (materials, labor and overhead) and marketing costs of P400. Production data: After careful study of the production processes, it was determined that manufacturing overhead was closely related to material usage. Thus manufacturing overhead to production is allocated based on pounds of materials used. The following are the production standards