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need help in checking my answers and answering the last boxes Sampson Industries manufactures plastic bottles for the food industry. On average, Sampson pays $74
need help in checking my answers and answering the last boxes
Sampson Industries manufactures plastic bottles for the food industry. On average, Sampson pays $74 per ton for its plastics. Sampson's waste-disposal company has increased its waste disposal-charge to $51 per ton for solid and inert waste. Sampson generates a total of 500 tons of waste per month. Sampson's managers have been evaluating the production processes for areas to cut waste. In the process of making plastic bottles, a certain amount of machine "drool" occurs. Machine drool is the excess plastic that drips off the machine between molds. In the past, Sampson has discarded the machine drool. In an average month, 200 tons of machine drool is generated. Management has arrived at three possible courses of action for the machine drool issue: (i) (Click the icon to view the courses of action.) Read the requirements. More info 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $11 per ton. 3. Re-engineer the production process at an annual cost of $75,000. This change in the production process would cause the amount of machine drool generated to be reduced by 60% each month. The remaining machine drool would then be sold to a local recycler for $11 per ton. Requirement 1. What is the annual cost of the machine drool currently? Include both the original plastic cost and the waste-disposal cost. Requirement 2. How much would the company save per year (net) if the machine drool were to be sold to the local recycler? (Use parentheses or a minus sign to show amounts that will reduce the annual savings. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs Step by Step Solution
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