How can quality improve profitability according to the material?

Quality can significantly enhance profitability primarily through sales gains and reduced costs. When a company focuses on improving the quality of its products or services, it often leads to increased customer satisfaction. Satisfied customers are more likely to make repeat purchases and recommend the product to others, resulting in higher sales volumes.

Additionally, enhancing quality can reduce costs associated with defects, returns, and warranties. When products are made correctly the first time and meet or exceed customer expectations, there are fewer expenses related to rework or replacements. This combination of increased sales and decreased operational costs directly contributes to improved profitability.

The other choices do not directly correlate with how quality impacts profitability. Increasing wages and salaries may improve employee morale and productivity but does not directly address customer satisfaction or cost reduction related to quality. Decreasing production volumes can lead to inefficiencies and higher per-unit costs, negatively impacting profitability. Investment in heavy machinery might improve production capabilities, but it does not necessarily equate to improved quality or profitability without effective management and processes in place.