Sampson Industries manufactures plastic bottles for the food industry. On average, Sampson pays $80 per ton for its plastics. Sampson's waste-disposal company has increased its waste disposal-charge to $54 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, 110 tons of machine drool is generated. Management has arrived at three possible courses of action for the machine drool issue: (Click the icon to view the courses of action.) Read the requirements. Requirement 1. What is the annual cost of the machine drool currently? Include both the original plastic cost and the waste-disposal cost. Annual cost Material cost of machine drool (plastic) $ 105,600 71,280 Disposal cost $ 176,880 Total annual 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.) Annual savings (net) Annual cost to re-engineer Amount received from local recycler Reduction in waste-disposal costs Total annual savings (net) i More Info 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $10 per ton. 3. Re-engineer the production process at an annual cost of $70,000. This change in the production process would cause the amount of machine drool generated to be reduced by 50% each month. The remaining machine drool would then be sold to a local recycler for $10 per ton. Print Done