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Question - Faraday Chemical produces two chemical products: an herbicide and an insecticide. The controller and environmental manager have identified the following environmental activities and costs associated with the two products
Herbicide
Insecticide
Pounds produced
12,000,000
30,000,000
Packaging materials (pounds)
3,600,000
1,800,000
Energy usage (kilowatt hours)
1,200,000
600,000
Toxin releases (pounds into air)
3,000,000
Pollution control (machine hours)
480,000
120,000
Cost of activities:
Using packaging materials
5,400,000
Using energy
1,440,000
Releasing toxins (fines)
720,000
Operating pollution control equipment
1,680,000
Required -
1. Calculate the environmental cost per pound for each product. Which of the two appears to cause the most degradation to the environment?
2. In which environmental category would you classify excessive use of materials and energy?
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