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) $774,000
D) $840,000

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) $774,000 
D) $840,000

Quizplus · Accepted Answer

To find the change in environmental costs from 2016 to 2017, we need to subtract the 2016 environmental quality cost from the 2017 environmental quality cost.

2016 environmental quality cost = $264,000 
2017 environmental quality cost = $330,000

Therefore, the change in environmental costs from 2016 to 2017 is:

$330,000 - $264,000 = $66,000

Hence, the correct choice is B.

Maroone Corporation Reported the Following Operating Costs and Environmental Quality