Requirement 4. What do you think the company should do? Explain your rationale. Sheldon Industries should (9) because (10) 1: More Info 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $17 per ton. local recycler for $17 per ton. 2: 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. Reduction in waste-disposal costs Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) sell the machine drool waste to a local recycler do nothing and pay the increased waste disposal costs re-engineer the production process (2) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs (4) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs (6) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) (8) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs Reduction in waste-disposal costs Reduction in waste-disposal costs Reduction in waste-disposal costs (10) the costs of selling or re-engineering the waste are too great this alternative has a minimal cost this alternative will result in the greatest net annual savings this alternative will result in the greatest waste reduction 1 (Click the icon to view the courses of action.) Read the requirements 2. Requirement 4. What do you think the company should do? Explain your rationale. Sheldon Industries should (9) because (10) 1: More Info 1. Do nothing and pay the increased waste-disposal charge. 2. Sell the machine drool waste to a local recycler for $17 per ton. local recycler for $17 per ton. 2: 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. Reduction in waste-disposal costs Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) sell the machine drool waste to a local recycler do nothing and pay the increased waste disposal costs re-engineer the production process (2) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs (4) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs (6) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) (8) Amount received from local recycler Annual cost to re-engineer Reduction in direct material costs (plastic) Reduction in waste-disposal costs Reduction in waste-disposal costs Reduction in waste-disposal costs Reduction in waste-disposal costs (10) the costs of selling or re-engineering the waste are too great this alternative has a minimal cost this alternative will result in the greatest net annual savings this alternative will result in the greatest waste reduction 1 (Click the icon to view the courses of action.) Read the requirements 2