Reference no: EM133072423
Question - Coburg Casual Coffee has evaluated the social and environmental costs of its coffee roasting facility. The total cost of running the roasting facility is $987,654, including $689,001 for the cost of unroasted beans and environmental costs of $91,173, as shown below.
Cost Item Cost Description Amount
i. Depreciation of oven fume extractor system $4,325
ii. Employee training costs to reduce environmental accidents 5,600
iii. Monitoring system to detect fumes 4,891
iv. Fine from Victorian EPA for dumping coffee grounds into the sewer 5,691
v. Inspection of drainage systems to detect problems with discharge 1,241
vi. Reduction in the value of nearby houses due to odour 53,651
vii. Routine cleaning of extractor system to remove coffee residues 2,561
viii. Disposal of waste coffee grounds 5,652
ix. Medical costs relating to employees' inhalation of fumes 7,561
Total $91,173
Required - Prepare an environmental cost analysis of the existing cost of $91,173, highlighting prevention, appraisal, and internal and external failure costs.
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