Quality Improvement and Profitability Objective Ming Company reported the following sales and quality costs for the past four years. Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program. Quality Costs as a Year Sales Revenues Percent of Revenues 1 $8,320,000 20% 2 9,120,000 17 3 11,120,000 13 4 12,820,000 9 Required: 1. Compute the quality costs for all four years. Quality Cost Year 1 $ Year 2 $ Year 3 $ Year 4 By how much did net income increase from Year 1 to Year 2 because of quality improvements? By how much did net income increase from Year 2 to Year 3 because of quality improvements? $ By how much did net income increase from Year 3 to Year 4 because of quality improvements? $