As Part of Its Environmental Cost Reporting System, Jesse Company

question 56

Multiple Choice

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 20X1?

• A)8.33%
• B)12%
• C)15%
• D)80%

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Definitions:

Merchant

An individual or entity engaging in the selling of goods or services professionally or commercially.

UCC

Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law.

Legal Sufficiency

The measure of whether a legal document or action meets the minimum requirements of the law to be enforceable.

Bilateral Contract

An agreement where each of the two parties makes a promise or set of promises to the other, creating mutual obligations.