As part of its environmental cost reporting system,Jackson Company tracks its total environmental costs.Consider the cost and sales data given: $\begin{array}{rrrr}
\text { Year}&\text { Total Environmental Costs }&\text { Sales Revenue }&\text { Operating Costs }\
\hline20 \mathrm{X} 1 & \$ 3,750,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 2 & 3,125,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 3 & 2,750,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 4 & 2,406.250 & \$ 31.250,000 & \$ 25,000,000
\end{array}$ What are the environmental costs as a percentage of sales for 20X2?

Question

As part of its environmental cost reporting system,Jackson Company tracks its total environmental costs.Consider the cost and sales data given: $\begin{array}{rrrr}
\text { Year}&\text {  Total Environmental Costs }&\text { Sales Revenue }&\text { Operating Costs }\
\hline20 \mathrm{X} 1 & \$ 3,750,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 2 & 3,125,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 3 & 2,750,000 & \$ 31,250,000 & \$ 25,000,000 \
20 \mathrm{X} 4 & 2,406.250 & \$ 31.250,000 & \$ 25,000,000
\end{array}$ What are the environmental costs as a percentage of sales for 20X2?

Quizplus · Accepted Answer

For 20X2, the environmental costs are $3,125,000 and the sales revenue is $31,250,000. To find the environmental costs as a percentage of sales, divide the environmental costs by the sales revenue and multiply by 100: $(3,125,000 / 31,250,000) * 100 = 10%$.

As Part of Its Environmental Cost Reporting System,Jackson Company Tracks