Reference no: EM132515300
Sustainability and Business Value
The following questions relate to Gluck Metal Works.
a. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $100 per ton. Gluck's waste disposal company charges $55 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 120 tons of waste per month.
Question 1: What is the annual cost of stamping waste, including both the materials cost and the disposal cost?
A. $223,200
B. $18,600
C. $144,000
D. $79,200
b. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $85 per ton. Gluck's waste disposal company charges $65 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 150 tons of waste per month.
Question 2: What is the net amount Gluck would save per year if stamping waste could be sold to a recycler for $33 per ton?
A. $12,750
B. $117,000
C. $176,400
D. $59,400
c. Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $80 per ton. Gluck's waste disposal company charges $70 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 170 tons of waste per month.
Question 3: Gluck has developed a new system that would increase the efficiency of its stamping process. The new system has an annual cost of $50,000, but would reduce stamping waste by 50%, the remaining waste would be sold to a recycler for $35 per ton. What is the net savings if Gluck implements this new system?
A. $210,100
B. $260,100
C. $142,800
D. $35,700