Environmental Products, Inc. manufactures surfactants used in
fertilizers and herbicides (surfactants minimize runoff). Environmental
Products uses two manufacturing processes, each having advantages. The
Hidex process is more expensive ($0.50 per gallon of Hidex) but produces
more surfactant and fewer emissions of the pollutant toxide per gallon
used. The Lodex process is less efficient in producing surficants but,
is less expensive ($0.25 per gallon of Lodex). The Lodex also has the
advantage of producing fewer pollutants per gallon used in the
production process.

To satisfy contracts with its customers, Environmental Products must
produce at least 240 gallons of surfactants per hour. Each gallon of
Hidex used in the production process generates 4 gallons of surfactant
and 10 parts per million (ppm) of toxide. Each gallon of Lodex produces 3
gallons of surfactant and 6 ppm of toxide. The EPA limits toxide
emissions to 600 ppm per hour. In addition, municipal regulations limit
emissions of solids to 180 ppm per hour, and the Hidex process produces
solids at a rate of 2 ppm per gallon used and the Lodex process produces
3 ppm per gallon used.

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