Omega Company made sales of P60,000,000 for 2018 and provided the following data:

Prevention costs P800,000

Appraisal cost P1,200,000

Internal failure costs P3,600,000

External failure costs P1,800,000

1. Calculate each category of quality costs as a percentage of sales

2. Calculate the total quality costs as a percentage sale

Cost of Quality = P C + A C + IFC + EFC

3. If quality costs were reduced to 3% of sales, determine the increase in profit that would result.