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What is the net savings if gluck implements new system

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Reference no: EM132515437

Point 1: 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.

Point 2: 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.

Question 1: What is the net savings if Gluck implements this new system?

A. $210,100

B. $260,100

C. $142,800

D. $35,700

Reference no: EM132515437

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