Maroone Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program. What is the change in environmental costs from 2016 to 2017?
A) $58,000
B) $66,000
C) $902,000
D) $960,000

Question

Maroone Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program.  What is the change in environmental costs from 2016 to 2017?
A) $58,000 
B) $66,000 
C) $902,000 
D) $960,000

Quizplus · Accepted Answer

To find the change in environmental costs from 2016 to 2017, we need to subtract the environmental costs for 2016 ($250,000) from the environmental costs for 2017 ($192,000), which gives us a difference of $58,000. Therefore, the correct answer is choice A.

Maroone Corporation Reported the Following Operating Costs and Environmental Quality