Carbondioxide Chemical Produces a Number of Chemical Products, Two of Which

question 143

Multiple Choice

Carbondioxide Chemical produces a number of chemical products, two of which are Product A1 and Product A2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: $\begin{array}{lrr}&\text { Froduct } A 1& \text { Product } A2\\\text { Pounds produced } & 200,000 & 500,000 \\\text { Packaging materials (pounds) } & 60,000 & 30,000 \\\text { Energy usage (kilowatt hours) } & 20,000 & 10,000 \\\text { Toxic releases (pounds into air) } & 50,000 & 10,000 \\\text { Pollution control (machine hours) } & 8,000 & 2,000\\\\\text { Costs of activities: } & \\\text { Using packaging materials } & \$ 90,000 \\\text { Using energy } & 24,000 \\\text { Releasing toxins (fines) } & 12,000 \\\text { Operating pollution control equipment } & 28,000\\\end{array}$ What is the pollution control cost per unit of Product A2?

• A)$0.1120
• B)$0.0280
• C)$0.0112
• D)$0.0448