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 20X4?

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 20X4?

Quizplus · Accepted Answer

To calculate the environmental costs as a percentage of sales for 20X4, divide the total environmental costs for 20X4 by the sales revenue for 20X4 and multiply by 100. For 20X4, this is $\frac{4,812,500}{68,750,000} \times 100 = 7\%$.

As Part of Its Environmental Cost Reporting System, Jesse Company