Opie Corporation Reported the Following Operating Costs and Environmental Quality

question 22

Multiple Choice

Opie 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.
$$\begin{array}{l}&\text { Quality Costs as }\\\text { Year } & \text { Operatine Casts } & \text { Percent of Operatine Casts } \\\hline 20 X 1 & \$ 3,000,000 & 25.0 \\20 X 2 & 3,100,000 & 23.0 \\20 X 3 & 3,200,000 & 21.0 \\20 X 4 & 3,300,000 & 20.0\end{array}$$
-Refer to the figure.What is the change in environmental costs from 20X2 to 20X3?

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

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Definitions:

Castrated

The action or practice of removing the testicles of a male animal or human, often leading to sterility and a decrease in certain hormone levels.

Penis Envy

A concept in Freudian psychoanalysis referring to a girl's sense of loss and jealousy over not having a penis.

Stubborn

Showing determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.

Superego

In psychoanalytic theory, a part of the personality composed of the moral standards and ideals acquired from parents and society, functioning to judge and restrict one’s impulses.