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Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company's operations manager is developing a strategy to become more CSR-oriented.

Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:

Initial Added Cost

Variable Cost

Variable Savings

Recycle and reuse production materials

$ 5,000

$0.10 per lb. of recycled material

$0.15 per lb. of recycled material

Add solar panels as a source of power

700,000

$ 1,000 per year

$ 33,000 per year

Replace assembly room light fixtures with natural light

120,000

$ 180 per month

$ 220 per month

The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.

a. Identify which CSR activities Green Manufacturing should implement.

b. For each CSR activity, you recommend, identify an appropriate related performance metric.

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