60.1K

Verified Solution

Link Copied!

Calculation explanations would be appreciated

Requirements 1. What is the annual cost of the machine drool currently? Include both the original plastic cost and the waste disposal cost. 2. How much would the company save per year (net) if the machine drool were to be sold to the local recycler? 3. How much would the company save per year (net) if the production process were to be re-engineered? 4. What do you think the company should do? Explain your rationale. Print Done II Homey Part 1 of 4 Points: 0 of 2 5 Sylvan Industries manufactures plastic botties for the food industry. On average, Sylvan pays $70 per ton for its plastios. Sylvan's waste disposal company has increased its waste disposal charge to $58 por ton for solid and not waste. Sylvan generates a total of 500 tons of wasto per month Sylvan's managers have been evaluating the production processes for areas to cut waste. In the process of making plastic bottles, a cortain amount of machine "drool cours. Machine drool is the excess plastic that drips of the machine between molds. In the past , Sylvan has discarded the machine drool. In an average month, 120 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 fexuitement ults Requirement 1. What is the annual cost of the machine drool currently include both the original plastic cost and the waste disposal cost hapt Annual cost ntinu 79-1 Material cost of machine drool (plastie) Disposal cost Total annual cost More Info st 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $14 per ton. 3. Re-engineer the production process at an annual cost of $75,000. This change in the production process would cause the amount of machine drool generated to be reduced by 40% each month. The remaining machine drool would then be sold to a local recycler for $14 per ton

Answer & Explanation Solved by verified expert

See Answer