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Planet Company had total sales of $15,000,000 for the fiscal year ending on December 31, 20X1. Planet's costs of quality are as follows: Warranties $600,000

Planet Company had total sales of $15,000,000 for the fiscal year ending on December 31, 20X1.

Planet's costs of quality are as follows:

Warranties $600,000 Scrap $450,000 Prototype inspection $90,000 Repairs $300,000 Quality audits $15,000 Product acceptance $150,000

Calculate Planet's prevention cost for the year.

$105,000

$510,000

$600,000

$710,000

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