As Part of Its Environmental Cost Reporting System, McClaren Company

question 32

Multiple Choice

As part of its environmental cost reporting system, McClaren Company tracks its total environmental costs. Consider the cost and sales data given: $\begin{array}{rrrr}&\text { Total }\\\text { Year }& \text { Environmental Costs }& \text { Sales Revenue } & \text { Operating Costs }\\2018 & \$ 3,750,000 & \$ 31,250,000 & \$ 25,000,000 \\2019 & 3,125,000 & 31,250,000 & \$ 25,000,000 \\2020 & 2,750,000 & 39,375,000 & \$ 25,000,000 \\2021 & 2,406,250 & 39,375,000 & \$ 25,000,000\end{array}$
What is the environmental costs as a percentage of sales for 2019?

• A)100%
• B)10%
• C)80%
• D)1,000%

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