Refer to Exercise 12-9. As part of its environmental cost reporting system, Henderson tracks its total environmental costs. Consider the cost and sales data given below.

Year Total Environmental Costs Sales Revenue 1998 $30,000,000 $250,000,000 1999 25,000,000 250,000,000 2000 22,000,000 275,000,000 2001 19,250,000 275,000,000 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.

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 en- ergy consumption. How does this compare with the conclusion that would be reached using a measure of progress that has not been normalized? Which is the best approach? Explain.