Randall Corporation Reported the Following Operating Costs and Environmental Quality

question 154

Essay

Randall 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.
$\begin{array}{ccc}&&\text { Environmental Costs as } \\\text { Year } & \text { Operating Cost } &\text { Percent of Operating Cost }\\1 & \$ 2,000,000 & 23.0 \\2 & 2,200,000 & 20.0 \\3 & 2,200,000 & 16.0 \\4 & 2.400 .000 & 12.0\end{array}$
a.Compute the environmental quality costs for all four years.
b.How much did net income increase from Year 1 to Year 2 because of quality improvements? From Year 2 to Year 3? From Year 3 to Year 4?

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake and personal rewards.

Performs Behavior

The act of carrying out actions or responses by an organism or individual in response to external or internal stimuli.

Pancreas

An organ in the digestive and endocrine system that secretes digestive enzymes and hormones, including insulin and glucagon.

Glucose Levels

The concentration of glucose (sugar) present in the blood, which is a critical indicator of metabolic health and is regulated by insulin and other factors.