Consider this scenario: Hatley Pesticide Company produces industrial waste as a byproduct of its production of pesticides. Imagine you join the company as the new president and discover that the company has been dumping the waste in a local river and falsifying reports to the authorities about the level of carcinogens in the waste. The production manager says that there's no proof that the waste cances cancer in those that drink the water from the river and surrounding area. He says, "well, there's only a few fishin villages downriver, so it's really not a big deal." If the company treats the waste so that the carcinogens are neutralized, and then dumps the waste at a legal dump site, the company's variable and fixed costs would rise to a level that might make the business uncompetitive. If the company's prohts fall as a result of implementing a costly clean- up plan, 10,000 employees might become unemployed and the local town's economy would suffer. Part 1: Post your thoughts on this issue by answering these questions: 1. What specific variable and fixed costs can you identity that would increase for decrease) If the waste were treated rather than dumped? How would these costs affect product contribution margin? 2. What ethical issues do you face as president? 3. What rationalizations can you detect that plant employees have devised? 4. What options and suggestions can you bring to the table