Part B: Sustainability and Business Value

The following questions relate to Gluck Metal Works.

a. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $100 per ton. Gluck's waste disposal company charges $55 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 120 tons of waste per month.

What is the annual cost of stamping waste, including both the materials cost and the disposal cost?

A.$223,200

B.$18,600

C.$144,000

D.$79,200

b. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $85 per ton. Gluck's waste disposal company charges $65 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 150 tons of waste per month.

What is the net amount Gluck would save per year if stamping waste could be sold to a recycler for $33 per ton?

A.$12,750

B.$117,000

C.$176,400

D.$59,400

c. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $80 per ton. Gluck's waste disposal company charges $70 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 170 tons of waste per month.

Gluck has developed a new system that would increase the efficiency of its stamping process. The new system has an annual cost of $50,000, but would reduce stamping waste by 50%, the remaining waste would be sold to a recycler for $35 per ton. What is the net savings if Gluck implements this new system?

A.$210,100

B.$260,100

C.$142,800

D.$35,700