As Part of Its Environmental Cost Reporting System, Jesse Company

question 42

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 20X3?

• A)8%
• B)12.5%
• C)72.73%
• D)125%

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