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Does someone can help me with project please? Thanks! LO 4 7-57 Relevant costs, qualitative factors, cost-of-qua framework, environmental issues Kwik Clean handles both commercial
Does someone can help me with project please? Thanks!
LO 4 7-57 Relevant costs, qualitative factors, cost-of-qua framework, environmental issues Kwik Clean handles both commercial laundry and cleaning Kwik individual customer dry current dry cleaning process involves e a pollutant into the air. In addition, the com mercial laundry and dry cleaning processes produce sediments and other elements that must receive special treatment before disposal. Pat Polley, Kwik Clean's owner, is concerned about the cost of dealing with increasingly stringent laws and environmental regulations. Recent legislation requires Kwik Clean to reduce its amount of air pollution emissions To reduce pollution emissions, Polley is considering the following two options Option 1: nvest in equipment that would reduce emissions through filtration. The equipment would involve a large capital expenditure but would bring Kwik Clean into compliance with current regulations for emissions Option 2: Invest in a new dry cleaning process that would eliminate current air pollution emissions, partly by using a different solvent than the one currently used. This option would require an even larger capital expenditure than option i, but the new equipment would reduce some operating costs. Moreover, Kwik Clean might be able to market its environmentally safer process to increase business In evaluating the two options and current operations, Polley has enumerated the following items 1. The price and quantity of solvent used in current operations (and option 1) 2. The price and quantity of the new solvent that would be used in option 2. 3. The purchase price of new equipment for option 1 and for option 2. 4. The cost of removing old equipment and installing new equipment under option 2 5. The purchase price of the filtration equipment in option 1 as well as the useful life of the equipmentStep by Step Solution
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