Albright Chemical Company currently operates three manufacturing plants in?Colorado, Utah, and Arizona. Annual carbon emissions for these...

90.2K

Verified Solution

Question

Accounting

Albright Chemical Company currently operates three manufacturingplants in?Colorado, Utah, and Arizona. Annual carbon emissions forthese plants in the first quarter of 2018 are120,000metric tons perquarter? (or 480,000 metric tons in 2018?). Albright management isinvestigating improved manufacturing techniques that will reduceannual carbon emissions to below 456,000metric tons so that thecompany can meet Environmental Protection Agency guidelines by2019. Costs and benefits are as? follows: Total cost to reducecarbon emissions $9 per metric ton reduced in 2019 below 480,000metric tons Fine in 2019 if EPA guidelines are not met $423,000Albright Management has chosen to use Kaizen budgeting to achieveits goal for carbon emissions. 1. If Albright reduces emissions by2 % each? quarter, beginning with the second quarter of 2018, willthe company reach its goal of 456,000 metric tons by the end of2019?? 2. What would be the net financial cost or benefit of their?plan? Ignore the time value of money. 3. What factors other thancost might weigh into Albright?'s decision to carry out this? plan?Requirement 1. If Albright reduces emissions by 2 % each? quarter,beginning with the second quarter of 2018, will the company reachits goal of 456,000 metric tons by the end of 2019? ?(Round allintermediary calculations and the amounts you input in the cells tothe nearest? dollar.) Begin by calculating the quarterly emissionsfor each quarter through the end of 2019. Quarterly emissionsQuarter (metric tons) 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019Q2 2019 Q3 2019 Q4 Will the company reach its goal of 456,000metric tons by the end of 2019?? Yes, Albright will / No, Albrightwill not reach its goal of 456,000 metric tons by the end of 2019.Requirement 2. What would be the net financial cost or benefit oftheir? plan? Ignore the time value of money. ?(Use parentheses or aminus sign to show a net? benefit.) _______________ ______________________________ ________________ Net cost (benefit) of plan_________________ Requirement 3. What factors other than cost mightweigh into Albright?'s decision to carry out this? plan? Avoidanceof the EPA fine should / should not be the? company's solemotivation in carrying out this plan. Reducing carbon emissions hasno impact on the environment is good for the environment, and willcontribute to a smaller impact on climate change / is too costlyand may not contribute to a smaller impact on climate change.Albright may be able to share this plan with the public to gainfavorable publicity / petition the EPA for a waiver. Albright couldchoose to end this plan at the end of 2019?, and still avoid theEPA fine / pay the EPA fine?; ?however, company management has noobligation to reduce carbon emissions should / strive to continuereducing carbon emissions if they have the technology to do so.

Answer & Explanation Solved by verified expert
3.6 Ratings (364 Votes)
1 Yes Albright will reach its goal of 456000 metric tons by the end of 2019 as per the table below Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 480000 470400 460992 451772 442737 433882 425204    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students