Trend, Long-Range Performance Report 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: 20x420x5 Sales Scrap Rework $600,000 15,000 20,000 5,000 10,000 8,000 $600,000 15,000 10,000 6,000 5,000 Training program Consumer complaints Lost sales, incorrect labeling Test labor Inspection labor Supplier evaluation 12,000 8,000 25,000 15,000 24,000 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: 15 % Scrap Training program Supplier evaluation Test labor 15 15 Inspection labor Total quality costs 100 % Required: 1. Profits increased by what amount due to quality improvements made in 20x5? 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 Actual Costs, 20x5 Long Range Target Costs Budget Variance Favourable (F), Unfavorable (U) or NA Prevention costs: ESS Total prevention costs Appraisal costs: Total appraisal costs Internal failure costs: poopool lodd odo o di pop pooppo Total internal failure costs $ External failure costs: Total external failure costs $ Total quality costs Percentage of sales 3. What would be the profit increase in 20x9 if the 2.5 percent performance standard is met in that year? The profit by $