Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 79

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. What is the change in environmental costs from 2017 to 2018?

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

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Definitions:

Marginal Cost

The production cost for one more unit of a product.

Local River

A naturally flowing body of water that is part of a community's immediate environment.

Long-run Cost Curve

Represents the cost of production when all inputs, including capital, can be varied, showing the lowest possible cost of producing each level of output.

Tax Rate

The percentage at which an individual or corporation is taxed.