Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 158

Multiple Choice

Carborundum 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. $\begin{array}{rrr}&\text { Quality Costs as }\\\text { Year }& \text { OperatingCosts } & \text { Percent of OperatingCosts }\\2018 & \$ 3,000,000 & 25.0 \\2019 & 3,100,000 & 23.0 \\2020 & 3,200,000 & 21.0 \\2021 & 3,300,000 & 20.0\end{array}$ What is the change in environmental costs from 2020 to 2021?

• A)$12,000
• B)$37,000
• C)$41,000
• D)$672,000

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