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Amber Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of
Amber Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of 2021 are 110,000 metric tons per quarter (or 440,000 metric tons in 2021). Amber management is investigating improved manufacturing techniques that will reduce annual carbon emissions to below 417,000 metric tons so that the company can meet Environmental Protection Agency guidelines by 2022. Costs and benefits are as follows: (Click the icon to view the costs and benefits.) Read the requirements. Quarter 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Quarterly emissions (metric tons) C Requirement Amber Management has chosen to use Kaizen budgeting to achieve its goal for carbon emissions. 2. 3. If Amber reduces emissions by 2% each quarter, beginning with the second quarter of 2021, will the company reach its goal of 417,000 metric tons by the end of 2022? What would be the net financial cost or benefit of their plan? Ignore the time value of money. What factors other than cost might weigh into Amber's decision to carry out this plan? What do you recommend Amber to do? Print Done Will the company reach its goal of 417,000 metric tons by the end of 2022? reach its goal of 417,000 metric tons by the end of 2022. Requirement 2. What would be the net financial cost or benefit of their plan? Ignore the time value of money. (Use parentheses or a minus sign to show a net benefit.) Net cost (benefit) of plan Requirement 3. What factors other than cost might weigh into Amber's decision to carry out this plan? What do you recommend Amber to do? Avoidance of the EPA fine able to be the company's sole motivation in carrying out this plan. Reducing carbon emissions Amber could choose to end this plan at the end of 2022, and however, company management Amber may be vill the company reach its goal of 417,000 metric tons by the end of 2022? reach its goal of 417,000 metric tons by the end of 2022. e the net financial cost or benefit of their plan? Ignore the time value of money. (Use parentheses or a minus sign to show a net benefit.) Yes, Amber will No, Amber will not Requirement 3. What factors other than cost might weigh into Amber's decision to carry out this plan? What do you recommend Amber to do? be the company's sole motivation in carrying out this plan. Reducing carbon emissions Avoidance of the EPA fine able to Amber could choose to end this plan at the end of 2022, and however, company management Amber may es Requirement 2. What would be the net financial cost or benefit of their plan? Ignore the time value of money. (Use parentheses or a minus sign to show a net benefit.) Fine avoided Fine paid Emissions in 2021 Emissions in 2022 Total cost of reduction t might weigh into Amber's decision to carry out this plan? What do you recommend Amber to do? le company's sole motivation in carrying out this plan. Reducing carbon emissions Amber could choose to end this plan at the end of 2022, and however, company manageme Avoidance of the EPA fine able to Calculator should be the company's sole motivation in carrying out this plan. Reducing Amber could choose to end this plan at t should not share this plan with the public to gain favorable publicity petition the EPA for a waiver sion to carry out carrying out this Amber could choose to e has no obligation to reduce carbon emissions should strive to continue reducing carbon emissions if they have the technology to do so ? What do you recomme educing carbon emission plan at the end of 2022, ses meni ins and has no impact on the environment is good for the environment, and will contribute to a smaller impact on climate change is too costly and may not contribute to a smaller impact on climate change ; however, company management Amber may be end ns and still avoid the EPA fine pay the EPA fine however, company management
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SOLUTION To determine whether Amber Chemical Company will reach its goal of 417000 metric tons by the end of 2022 we need to calculate the emissions for each quarter based on a 2 reduction Quarterly e...Get Instant Access to Expert-Tailored Solutions
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