Sparkling Ltd. manufactures laundry detergents. To reduce the impact of its operations on the environment, Sparkling's CEO has decided to develop a four-year Environmental Action Plan. As a first step, the senior management accountant, Zer Wanless, has identified the following costs for the year just ended in its accounting records as environmentally-related:

Treating and disposing of toxic waste safely = $3,840,000

Cleaning up chemically contaminated soil = $1,440,000

Testing for potential air pollution = $480,000

Maintaining pollution control equipment = $300,000

Inefficient material usage = $960,000

Conducting environmental studies = $96,000

Verifying the firm's current supplier's environmental performance = $44,000

Training employees to be environmentally-aware = $60,000

Please see the environmental cost report already prepared:

% of total % per operating environmental expenses Environmental costs 3 costs @ Environmental studies 96,000 Environmental training 60,000 1 56,000 2.2% 0.4% @ Testing for contamination 480,000 Verifying existing suppliers 44,000 524,000 7.3% 1.3% interim] failure crusts; Treating toxic waste 3,840,000 Maintaining pollution equipment 300,000 4,140,000 57.3% 10.4% Exteriml i'uiluru costs: Ineicient materials usage 960,000 Cleanup of soil 1,440,000 2,400,000 33.2% 6.0% Total environmental costs 7,220,000 100.0% 18.1%