In 20x4, Tru-Delite Frozen Desserts, Inc., instituted a quality improvement program. At the end of 20x5, the management of the corporation requested a report to show the amount saved by the measures taken during the year. The actual sales and quality costs for 20x4 and 20x5 are as follows:

	20x4	20x5
Sales	$600,000	$600,000
Scrap	15,000	15,000
Rework	20,000	10,000
Training program	5,000	6,000
Consumer complaints	10,000	5,000
Lost sales, incorrect labeling	8,000	0
Test labor	12,000	8,000
Inspection labor	25,000	24,000
Supplier evaluation	15,000	13,000

Tru-Delite's management believes that quality costs can be reduced to 2.5 percent of sales within the next five years. At the end of 20x9, Tru-Delite's sales are projected to grow to $750,000. The projected relative distribution of quality costs at the end of 20x9 is as follows:

Scrap	15	%
Training program	20
Supplier evaluation	25
Test labor	25
Inspection labor	15
Total quality costs	100	%

Required:

Question Content Area

1. Profits increased by what amount due to quality improvements made in 20x5? $fill in the blank 6c9ac9f8006600a_1

Question Content Area

2. Prepare a long-range performance report that compares the quality costs incurred at the end of 20x5 with the quality cost structure expected at the end of 20x9. If an amount is zero, enter "0". Round percentages to one decimal place, when rounding is required. For example, 5.8% would be entered as "5.8". Select "NA" if there is no budget variance. Round your answers to the nearest dollar, with two exceptions: round test labor and scrap long-range target costs down to the nearest dollar (for example, $905.90 rounds down to $905).

Tru-Delite Frozen Desserts, Inc. Long-Range Performance Report For the Year Ended December 31, 20x5

blank	Actual Costs, 20x5	Long-Range Target Costs	Budget Variance	Favourable (F), Unfavorable (U) or NA
Prevention costs:	blank	blank	blank	blank
Consumer complaintsInspection laborLost sales, incorrect labelingPercent of salesReworkScrapTest laborTraining program	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Consumer complaintsInspection laborLost sales, incorrect labelingPercent of salesReworkScrapSupplier evaluationTest labor	- Select -	- Select -	- Select -	FavorableNAUnfavorable
Total prevention costs	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Appraisal costs:	blank	blank	blank	blank
Consumer complaintsLost sales, incorrect labelingPercent of salesReworkScrapSupplier evaluationTest laborTraining program	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Consumer complaintsInspection laborLost sales, incorrect labelingPercent of salesReworkScrapSupplier evaluationTraining program	- Select -	- Select -	- Select -	FavorableNAUnfavorable
Total appraisal costs	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Internal failure costs:	blank	blank	blank	blank
Consumer complaintsInspection laborLost sales, incorrect labelingPercent of salesScrapSupplier evaluationTest laborTraining program	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Consumer complaintsInspection laborLost sales, incorrect labelingPercent of salesReworkSupplier evaluationTest laborTraining program	- Select -	- Select -	- Select -	FavorableNAUnfavorable
Total internal failure costs	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
External failure costs:	blank	blank	blank	blank
Consumer complaintsInspection laborPercent of salesReworkScrapSupplier evaluationTest laborTraining program	$- Select -	- Select -	$- Select -	FavorableNAUnfavorable
Inspection laborLost sales, incorrect labelingPercent of salesReworkScrapSupplier evaluationTest laborTraining program	- Select -	- Select -	- Select -	FavorableNAUnfavorable
Total external failure costs	$- Select -	- Select -	$- Select -	FavorableNAUnfavorable
Total quality costs	$- Select -	$- Select -	$- Select -	FavorableNAUnfavorable
Percentage of sales	- Select -%	- Select -%	- Select -%	FavorableNAUnfavorable

Question Content Area

3. What would be the profit increase in 20x9 if the 2.5 percent performance standard is met in that year? The profit

increasedecrease

by $ fill in the blank 3d8f8ff7c02cfc1_2