At the end of 2011, Hender Chemicals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:

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2011 Settling personal injury claims $1,200,000 Treating and disposing of toxic waste 4,800,000 Cleanup of chemically contaminated soil 1,800,000 Inspecting products and processes 600,000 Operating pollution control equipment 840,000 Licensing facilities for producing contaminants 360,000 Evaluating and selecting suppliers 120,000 Developing performance measures 60,000 Recycling products 75,000