Refer to Problem 16-12. As part of its environmental cost reporting system, Limon tracks its total environmental costs. Consider the following cost and sales data:

Required:
1. Prepare a bar graph for environmental costs expressed as a percentage of sales.
Assuming that environmental performance has improved, explain why environmental costs have decreased.

2. Normalize energy consumption by expressing it as a percentage of sales. Now, prepare a bar graph for energy. Comment on the progress made in reducing energy consumption. How does this compare with the conclusion that would be reached using a nonnormalized measure of progress? Which is the best approach? Explain.

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Year Total Environmental Costs Sales Revenue 2004 $30,000,000 25,000,000 $250,000,000 2005 250,000,000 2006 22,000,000 275,000,000 2007 19,250,000 275,000,000