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 2015?
A) 100%
B) 10%
C) 80%
D) 1,000%

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 2015?
A) 100% 
B) 10% 
C) 80% 
D) 1,000%

Quizplus · Accepted Answer

Environmental costs for 2015 were €44,000 and sales were €440,000, as shown in the chart. To calculate the environmental costs as a percentage of sales, we need to divide the environmental costs by sales and then multiply by 100.

(€44,000 / €440,000) x 100 = 0.1 x 100 = 10%

Therefore, the environmental costs for 2015 are 10% of sales.

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