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Sheldon industries manufactures plastic bottes for the food industry. On average, Sheldon pays $78 per tan lor is plastics. Sheldon's waste-dspisal company has increased its
Sheldon industries manufactures plastic bottes for the food industry. On average, Sheldon pays $78 per tan lor is plastics. Sheldon's waste-dspisal company has increased its waste disposal-charge to $60 per ton for solid and inert werde Sheldon generates a total of 500 tons of wasta per morth Sheldon's managers have been evaluating the production processes for areas to out waste in the process of making pimb bottos, a certain amount of machine "dros cours Machine droal is the excess plastic that drips off the machine between molds. In the pest, Sheldon has discarded the machine drool in an average month, 190 tons of machine drool is generated Management has arrived at thro action for the machine drock issue (Click the icon to view the courses of action) Read the aurements Requirement 1. What is the annual cost of the machine drool currenty? include both the original plastic cost and the waste-disposal cost Material cost of machine drool (plastic) Total annual cost More info Annual cost 1. Do nothing and pay the increased waste-disposal charge 2. Sell the machine drool waste sa socal recycler for $15 per to 3. Ka-engineer the production process at an annual coet of $70,000. This change is the production process would cause the amount of machine drool generated to be reduced by 43% each month. The remaining machine diool would then be sold local cyder for $15 pro Requirements t. What is the annual cost of the machine drock cutly? include both the arginal plastic cost and the wade-dapest 2. How much would the company save per year (net) if the machine rod were be said to the local cycle? 3. How much would the company save per year (e) if the protun proces 4 What do you think the company should do? Explain your rationale Print Done
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