At the Beginning of the Year, Lombardi Company Initiated an Environmental

question 140

Multiple Choice

At the beginning of the year, Lombardi Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data was collected for the current and preceding year: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Operating costs } & \$ 4,500,000 & \$ 4,500,000 \\\text { Designing products } & 3,000 & 4,500 \\\text { Auditing environmental activities } & 7,500 & 12,000 \\\text { Recycling scrap } & 60,000 & 45,000 \\\text { Disposing of toxic waste } & 120,000 & 75,000 \\\text { Testing for contamination } & 15,000 & 30,000 \\\text { Cleaning up oil spills } & 105,000 & 82,500\end{array}$ For the current year, external failure costs are what percentage of operating costs?

• A)2.67%
• B)1.83%
• C)1.38%
• D)0.93%

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Definitions:

Torx Heads

A type of screw head characterized by a six-pointed star shape, designed to provide a better grip and torque than traditional screw heads.

Open-End Jaw

A wrench design featuring a U-shaped opening that grips two opposite sides of a nut or bolt head.

Box-End

A type of wrench or spanner with a closed loop that fits over the head of a bolt or nut, providing a secure grip for turning.

Allen Drivers

Tools with a hexagonal tip, used for turning screws or bolts with a matching hexagonal recess, commonly used in assembly and repair tasks.