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Ample Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of 2018

Ample Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of 2018 are 120 comma 000 metric tons per quarter (or 480 comma 000 metric tons in 2018). Ample management is investigating improved manufacturing techniques that will reduce annual carbon emissions to below 460 comma 000 metric tons so that the company can meet Environmental Protection Agency guidelines by 2019. Costs and benefits are as follows: total cost to reduce carbon emmision $15 PER METRIC to reduced in 2019 below 480,000 metric tons. Fine in 2019 if EPA guidelines are not met &726,000

Read the requirements Ample Management has chosen to use Kaizen budgeting to achieve its goal for carbon emissission if

1.

Amplereduces emissions by 2% each quarter, beginning with the second quarter of 2018, will the company reach its goal of 460,000 metric tons by the end of 2019?

2.

What would be the net financial cost or benefit of their plan? Ignore the time value of money.

3.

What factors other than cost might weigh into Ample's decision to carry out this plan?

Requirement 1. If Ample reduces emissions by 2 % each quarter, beginning with the second quarter of 2018, will the company reach its goal of 460 comma 000 metric tons by the end of 2019? (Round all intermediary calculations and the amounts you input in the cells to the nearest dollar.) Begin by calculating the quarterly emissions for each quarter through the end of 2019. Quarterly emissions Quarter (metric tons) 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 Will the company reach its goal of 460 comma 000 metric tons by the end of 2019? No, Ample will not Yes, Ample will reach its goal of 460 comma 000 metric tons by the end of 2019.

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 Ample's decision to carry out this plan? Avoidance of the EPA fine should, should not be the company's sole motivation in carrying out this plan. Reducing carbon emissions has no impact on the environment or is good for the environment, or and will contribute to a smaller impact on climate change is too costly and may not contribute to a smaller impact on climate change . Ample may be able to share this plan with the public to gain favorable publicity or petition the EPA for a waiver . Ample could choose to end this plan at the end of 2019, and still avoid the EPA fineor pay the EPA fine ; however, company management has no obligation to reduce carbon emissions or should strive to continue reducing carbon emissions if they have the technology to do so . Choose from any list or enter any number in the input fields and then continue to the next question.

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