Figure 14-9 As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given:
Refer to Figure 14-9. What is the environmental costs as a percentage of sales for 2016?

Question

Figure 14-9 As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given:
 Refer to Figure 14-9. What is the environmental costs as a percentage of sales for 2016?

Quizplus · Accepted Answer

According to Figure 14-9, the environmental costs for 2016 were €33,600,000 and the sales were €420,000,000. To calculate the environmental costs as a percentage of sales, we need to divide the environmental costs by sales and multiply the result by 100: 
Environmental costs as a percentage of sales = (Environmental costs / Sales) x 100
= (€33,600,000 / €420,000,000) x 100
= 8%
Therefore, the environmental costs as a percentage of sales for 2016 were 8%. Option C is the correct choice.

Figure 14-9 as Part of Its Environmental Cost Reporting System