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%

Question

Quizplus · Accepted Answer

The environmental costs as a percentage of sales for 2019 is calculated by dividing the environmental costs by the sales revenue and then multiplying by 100. For 2019, this is $\frac{3,125,000}{31,250,000} \times 100 = 10\%$.

As Part of Its Environmental Cost Reporting System, McClaren Company