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QUESTION 7-12 Analysis of economic, environmental and social costs; measuring economic; environmental and social impacts; sustainability reporting Croydon Cable Manufactures optical fiber cables in
QUESTION 7-12 Analysis of economic, environmental and social costs; measuring economic; environmental and social impacts; sustainability reporting Croydon Cable Manufactures optical fiber cables in Victoria, Australia and is thinking of setting up a plant in Goa, India. The company is considering weather to continue operations in Australia or manufacture in India. Operating data for Croydon and Goa are as follows: Data Material Per cable Croydon Goa $115 $75 Labour time per cable in 45 90 minutes Labour cost per hour Waste per cable in Kilograms Effective working weeks per 45 annum per employee Fixed manufacturing costs per annum Delivery time in days $21.00 $1.50 15 35 50 $90,000 $45,000 7 28 If the Goa plant is opened, the croydon plant will be closed. If the croydon plant is closed. the employees will most certainly be unemployed. There is apprehension in the local community about the closure, especially among the older employees. The plant appears to have few airborne pollutants and does not contaminate the waterways and sewers. Question 7: Analyse and comment on the alternatives being considered by croydon cables using only financial data. Show a financial analysis. Question 8: Appraise the alternatives being considered by Croydon Cables using only environmental and social impact data. Question 9: Evaluate the impacts the decision made by croydon cables may have on the broader economy. Question 10: Examine the issues the board of croydon cables should consider when making its decisions.
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