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Coburg Casual Coffee has evaluated the social and environmental costs of its coffee roasting facility. The total cost of running the roasting facility is $987,654,
Coburg Casual Coffee has evaluated the social and environmental costs of its coffee roasting facility. The total cost of running the roasting facility is $987,654, including $689,001 for the cost of unroasted beans and environmental costs of $91,173, as shown below.
Cost Item | Cost Description | Amount |
i. | Depreciation of oven fume extractor system | $4,325 |
ii. | Employee training costs to reduce environmental accidents | 5,600 |
iii. | Monitoring system to detect fumes | 4,891 |
iv. | Fine from Victorian EPA for dumping coffee grounds into the sewer | 5,691 |
v. | Inspection of drainage systems to detect problems with discharge | 1,241 |
vi. | Reduction in the value of nearby houses due to odour | 53,651 |
vii. | Routine cleaning of extractor system to remove coffee residues | 2,561 |
viii. | Disposal of waste coffee grounds | 5,652 |
ix. | Medical costs relating to employees' inhalation of fumes | 7,561 |
Total | $91,173 |
(a) Prepare an environmental cost analysis of the existing cost of $91,173, highlighting prevention, appraisal, and internal and external failure costs.
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