The following data relates to the financial year ended 30 June 20X9 for Westfall Pty Ltd.
$
Sales 600,000
Quality training 2280
Materials inspection 4000
Scrap 15000
Rework 24000
Product inspection 6000
Product warranty 12000
Based on this data, what is the ratio of prevention costs to sales?
A. 0.38 percent
B. 1.00 percent
C. 1.05 percent
D. 1.38 percent
Additional Requirement
This kinds of problem belongs to Finance and it is about estimate of the ratio of prevention of costs to sales for a company.