Sandler Industries manufactures plastic bottles for the food industry. On average, Sandler pays $74 per ton for its plastics. Sandler's waste-disposal company has increased its waste disposal-charge to $57 per ton for solid and inert waste. Sandler generates a total of 500 tons of waste per month. Sandler'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, Sandler has discarded the machine drool. In an average month, 180 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) Disposal cost Total annual cost 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $20 per ton. 3. Re-engineer the production process at an annual cost of $40,000. 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 $20 per ton