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As part of its environmental cost reporting system, Crimson Company tracks its total environmental costs. Consider the following cost and sales data: Total Year Environmental

As part of its environmental cost reporting system, Crimson Company tracks its total environmental costs. Consider the following cost and sales data:

Total

Year

Environmental Costs

Sales Revenue

Operating Costs

1

$1,750,000

$11,250,000

$5,000,000

2

1,125,000

13,725,000

7,000,000

What is the change in environmental costs from Year 1 to Year 2 as a percentage of operating costs of Year 1 (rounded to two decimal places)?

a.12.50%

b.12.22%

c.10.00%

d.17.78%

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