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As Part of Its Environmental Cost Reporting System, Lamborghini Company

question 93

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As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given:  Total  Year  Environmental Costs  Sales Revenue  Operating Costs 2018$7,500,000$62,500,000$50,000,00020196,250,00062,500,000$50,000,00020205,500,00068,750,000$50,000,00020214,812,50068,750,000$50,000,000\begin{array}{rrrr}&\text { Total }\\\text { Year }& \text { Environmental Costs }& \text { Sales Revenue } & \text { Operating Costs }\\2018 & \$ 7,500,000 & \$ 62,500,000 & \$ 50,000,000 \\2019 & 6,250,000 & 62,500,000 & \$ 50,000,000 \\2020 & 5,500,000 & 68,750,000 & \$ 50,000,000 \\2021 & 4,812,500 & 68,750,000 & \$ 50,000,000\end{array} What is the environmental costs as a percentage of sales for 2018?


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