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Blake Fertilizer Company Produces a Number of Chemical Products,two of Which

Question 141

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Blake Fertilizer Company produces a number of chemical products,two of which are Product X and Product Y.The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
Product XProduct Y Kilograms produced 250,000625,000 Energy usage (kilowatt hours) 25,00012,500 Pollution control (machine hours) 10,0002,500 Toxic releases (kilograms into air) 62,50012,500 Packaging materials (kilograms) 75,00037,500 Costs of activities:  Using packaging materials $225,000 Using energy 60,000 Releasing toxins (fines) 30,000 Operating pollution control equipment 70,000\begin{array}{lr}&\text {Product X}&\text {Product Y}\\\text { Kilograms produced } & 250,000 & 625,000 \\\text { Energy usage (kilowatt hours) } & 25,000 & 12,500 \\\text { Pollution control (machine hours) } & 10,000 & 2,500 \\\text { Toxic releases (kilograms into air) } & 62,500 & 12,500 \\\text { Packaging materials (kilograms) } & 75,000 & 37,500\\\\\text { Costs of activities: }\\\text { Using packaging materials } & \$ 225,000 \\\text { Using energy } & 60,000 \\\text { Releasing toxins (fines) } & 30,000 \\\text { Operating pollution control equipment } & 70,000\end{array}
a.Calculate the environmental cost per kilogram for each product.
b.Which of the two appears to cause the most degradation to the environment?

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a.Using packaged materials: $225,000/112...

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