As part of its environmental cost reporting system, Jesse Company tracks its total environmental costs. Consider the cost and sales data given:
$\begin{array}{rrrr}
\text { Year}&\text { Total Environmental Costs }&\text { Sales Revenue }&\text { Operating Costs }\
\hline20 X 1 & \$ 7,500,000 & \$ 62,500,000 & \$ 50,000,000 \
20 X 2 & 6,250,000 & 62,500,000 & \$ 50,000,000 \
20 X 3 & 5,500,000 & 68,750,000 & \$ 50,000,000 \
20 X 4 & 4.812 .500 & 68.750,000 & \$ 50,000,000
\end{array}$
-Refer to the figure.What are the environmental costs as a percentage of sales for 20X3?

Question

As part of its environmental cost reporting system, Jesse Company tracks its total environmental costs. Consider the cost and sales data given:
$\begin{array}{rrrr}
\text { Year}&\text {  Total Environmental Costs }&\text { Sales Revenue }&\text { Operating Costs }\
\hline20 X 1 & \$ 7,500,000 & \$ 62,500,000 & \$ 50,000,000 \
20 X 2 & 6,250,000 & 62,500,000 & \$ 50,000,000 \
20 X 3 & 5,500,000 & 68,750,000 & \$ 50,000,000 \
20 X 4 & 4.812 .500 & 68.750,000 & \$ 50,000,000
\end{array}$
-Refer to the figure.What are the environmental costs as a percentage of sales for 20X3?

Quizplus · Accepted Answer

Environmental costs as a percentage of sales for 20X3 = (Environmental costs / Sales revenue) * 100= (5,500,000 / 68,750,000) * 100= 8%

As Part of Its Environmental Cost Reporting System, Jesse Company