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Sorrento Industries manufactures plastic bottles for the food industry. On average, Sorrento pays $74 per ton for its plastics. Sorrento's waste-disposal company has increased its
Sorrento Industries manufactures plastic bottles for the food industry. On average, Sorrento pays $74 per ton for its plastics. Sorrento's waste-disposal company has increased its waste disposal-charge to $60 per ton for solid and inert waste. Sorrento generates a total of 500 tons of waste per month. Sorrento'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, Sorrento has discarded the machine drool. In an average month, 170 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 Requirement 3. How much would the company save per year (net) if the production process were to be re-engineered? (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.) Sorrento Industries manufactures plastic bottles for the food industry. On average, Sorrento pays $74 per ton for its plastics. Sorrento's waste-disposal company has increased its waste disposal-charge to $60 per ton for solid and inert waste. Sorrento generates a total of 500 tons of waste per month. Sorrento'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, Sorrento has discarded the machine drool. In an average month, 170 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. 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 $45,000. 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
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