Waurika Pharmaceuticals produces two organic chemicals $($Org AB and Org XY$)$ used in the production of two of its most wide$-$selling anti$-$cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:

Org AB Org XY

Pounds produced $6,500,00015,925,000$

Packaging materials $($pounds$)1,625,000975,000$

Energy usage $($kilowatt$-$hours$)650,000520,000$

Toxin releases $($pounds into air$)975,000325,000$

Pollution control $($machine hours$)195,00065,000$

Costs of activities:

Using packaging materials $$2,600,000$

Using energy $780,000$

Releasing toxins $($fines$)390,000$

Operating pollution control equipment $715,000$

Required:

$1.$ Calculate the environmental cost per pound for each product. Round your calculations and answers to four decimal places.

Unit Cost Per Pound

Org AB $fill in the blank $1$

$1\mathrm{.}66$

Org XY $fill in the blank $2$

$3\mathrm{.}05$

Which of the two products appears to cause the most degradation to the environment?

Org AB

$2.$ In which environmental category would you classify excessive use of materials and energy?

External failure cost

$3.$ Suppose that the toxin releases cause health problems for those who live near the chemical plant. The costs, due to missed work and medical treatments, are estimated at $$1,755,000$ per year. How would assignment of these costs change the unit cost? Round your calculations and answers to three decimal places.

Unit Cost

Org AB

Increase

by $fill in the blank $6$

$1\mathrm{.}35$

Org XY

Increase

by