During the past four years, Blanding Company has made significant efforts to improve its environmental performance. Two of the strategic objectives that have received considerable attention are those of minimizing hazardous materials and minimizing release of liquid residues. Actually, there are two objectives associated with hazardous waste. First, the company wants to reduce the amount produced. Second, the company wants to shift the ways of dealing with hazardous waste from landfill and deep-well injections to such methods as incineration, treatment, and recycling. Kim Gladden, president of Blanding, also required the Accounting Department to track and report on environmental progress. Internal and external environmental progress reports were prepared. The following data pertain to the two strategic objectives that have been emphasized.
Hazardous waste objective (measured in tons):
| Year |
Incinerated |
Treated |
Recycled |
Landfilled |
Injected |
Total |
|
2005
|
2,000
|
2,000
|
1,000
|
35,000
|
10,000
|
50,000
|
|
2006
|
4,000
|
2,000
|
2,000
|
30,000
|
10,000
|
48,000
|
|
2007
|
8,000
|
3,000
|
3,000
|
25,000
|
7,000
|
46,000
|
|
2008
|
15,000
|
3,000
|
3,500
|
15,000
|
3,500
|
40,000
|
Liquid residue objective:
Year
|
Tons of Sulfates |
|
2005
|
100
|
|
2006
|
92
|
|
2007
|
81
|
|
2008
|
73
|
The cost of landfilling hazardous waste is $50 per ton; injection is $60 per ton; incineration is $70 per ton; treatment is $100 per ton; and recycling produces a benefit of $10 per ton. Recycling, however, can be done only for a certain type of hazardous waste and only with a 70 percent successful yield. Treatment is also limited to certain types of waste. Fines, pollution control equipment, and expected cleanup costs are $4,000 per ton for the liquid residues.
Required
1. Prepare a hazardous waste bar graph that shows trends. Comment on the progress revealed.
2. Prepare a pie chart for hazardous waste for the years 2005 and 2008. Comment on the progress in reducing reliance on landfills and injections.
3. Prepare a bar graph for the liquid residues.
4. Calculate the environmental cost for hazardous waste and liquid residues in 2005 and 2008. Comment on environmental progress as measured by the financial outcomes. Is it possible that the savings are understated? Explain.