Verde Company reported operating costs of $32,000,000 as of December 31, 20x5, with the following environmental costs:

Testing for contamination	$ 448,000
Inspecting products	448,000
Treating toxic waste	1,344,000
Obtaining ISO 14001 certification	864,000
Designing processes	448,000
Cleaning up oil spills	2,368,000
Maintaining pollution equipment	384,000
Cleaning up contaminated soil	3,808,000

Required:

1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".

Verde Company
Environmental Cost Report
For the Year Ended December 31, 20x5
	Environmental Cost	Total Environmental Cost	Percentage of Operating Costs
Prevention costs:
	$fill in the blank 7ce0b6fb8052fde_2
	fill in the blank 7ce0b6fb8052fde_4	$fill in the blank 7ce0b6fb8052fde_5	fill in the blank 7ce0b6fb8052fde_6%
Detection costs:
	$fill in the blank 7ce0b6fb8052fde_8
	fill in the blank 7ce0b6fb8052fde_10	fill in the blank 7ce0b6fb8052fde_11	fill in the blank 7ce0b6fb8052fde_12%
Internal failure costs:
	$fill in the blank 7ce0b6fb8052fde_14
	fill in the blank 7ce0b6fb8052fde_16	fill in the blank 7ce0b6fb8052fde_17	fill in the blank 7ce0b6fb8052fde_18%
External failure costs:
	$fill in the blank 7ce0b6fb8052fde_20
	fill in the blank 7ce0b6fb8052fde_22	fill in the blank 7ce0b6fb8052fde_23	fill in the blank 7ce0b6fb8052fde_24%
Total quality costs		$fill in the blank 7ce0b6fb8052fde_25	fill in the blank 7ce0b6fb8052fde_26%

2. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? What is the most likely reason?