As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given: $\begin{array}{rrrr}
&\text { Total }\
\text { Year }& \text { Environmental Costs }& \text { Sales Revenue } & \text { Operating Costs }\
2018 & \$ 7,500,000 & \$ 62,500,000 & \$ 50,000,000 \
2019 & 6,250,000 & 62,500,000 & \$ 50,000,000 \
2020 & 5,500,000 & 68,750,000 & \$ 50,000,000 \
2021 & 4,812,500 & 68,750,000 & \$ 50,000,000
\end{array}$ What is the environmental costs as a percentage of sales for 2021? (Round to two decimal places.)
A)14.29%
B)1428.57%
C)72.73%
D)7%

Question

Quizplus · Accepted Answer

To find the environmental costs as a percentage of sales for 2021, divide the environmental costs by the sales revenue for that year and multiply by 100. For 2021, this is $\frac{4,812,500}{68,750,000} \times 100 = 7\%$.

As Part of Its Environmental Cost Reporting System, Lamborghini Company