D. The contribution margin ratio equals E Fixed expenses divided by contribution ratio is break-even quantity the selling price per unit less the vanabe Taft Corporation has provided the following summary of its quality cost report for the last two years: Summary of Quality Cost Report This year Last Year Prevention costs Appraisal costs Internal failure costs External failure costs $ 300 S 200 210 190 315 114 621 Total quality costs S 1.350 S 1,800 17 On the basis of this report, which one of the following statements is most likely correct? The total quality cost decreased significantly because all activities were performed with fewer dollar costs. An increase in prevention and appraisal costs resulted in fewer defects, and therefore, resulted in a decrease in internal and external failure costs. A decrease in internal and external failure costs resulted in less need for prevention and appraisal costs. Quality costs such as scrap and rework decreased by 48%. Quality costs such as returns and repairs under warranty decreased by 40%. C. D. E Page 12 of 14