Question
PrintRight makes printers for home use. They had annual net sales of $1,200,000 in 2020 from selling 8,000 printers. They consumed 40,000 kilograms of raw
PrintRight makes printers for home use. They had annual net sales of $1,200,000 in 2020 from selling 8,000 printers. They consumed 40,000 kilograms of raw materials including plastic, aluminium, copper and other components.
In 2021 the made and sold 7,500 printers and made sales of $1,350,000. They reported an eco-efficiency ratio (sales to kg) of 33.75:1. They claim that this is an improvement on 2021 as they used only 1kg of materials per $33.75 of sales.
Required:
(a) What is the businesss eco-efficiency ratio (sales to kg) for 2020?. (2 marks)
(b) Examine PrintRights eco-efficiency claims for 2021. Calculate the amount of kgs used in 2021. (3 marks)
(c) Calculate the amount of kg used per item sold rather than per dollar sale for 2020 and 2021. Is there really an improvement in 2021? (6 marks)
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