Niobrara Pesticide Company's new president has learned
that, for the past four years, the company has been dumping its industrial waste into
the local river and falsifying reports to authorities about the levels of suspected carcinogens
in that waste. The e plant manager says that there is no proof that the waste
Causes cancer and that only a few fishing villages are within 100 miles downriver. If
the company must treat the substance to neutralize its potentially injurious effects
and then transport it to a legal dump site, the company's variable and fixed costs
would rise to a level that might make the firm uncompetitive. If the company loses
its competitive advantage, 10,000 local employees could become unemployed and the
town's economy could collapse.
a. What specific variable and fixed costs can you identify that would increase (or
decrease) if the waste were treated rather than dumped? How would these costs
affect product contribution margin?
b. What ethical conflicts does the president face?
c. What rationalizations can you detect that plant employees have devised?
d. What options and suggestions can you off er the president?

This is a homework question, because you don't say what country this is in, I mean, what are you trying to accomplish here? Our answers for a neighbourhood delima; a countries problem with a dam facility.

Or what. Please elucidate.

Not only is it a homework question it has little to do with accounting and much to do with ethics and law. I expect prosecution policy in this country includes a firing squad