A diesel refinery is upstream of an industrial farm. The runoff from the refinery pollutes the river and damages the crops. The farm earns $479 using the polluted water, but would earn $621 if it were clean. The refinery earns $6015 but would only earn $5839 if it had to divert resources to prevent the runoff. There are no environmental laws. Assume that a scrubbing machine that would prevent the runoff costc C17 plLuc an inctallation cost What ic the mect
Q: A fiber company purchased base ingredients and produced a Petro Fiber for use in making air…
A: if Petro fiber sold at split off Point CALCULATION PARTICULAR AMOUNT A Sale at Split…
Q: Signal mistakenly produced 1,400 defective cell phones. The phones cost $63 each to produce. A…
A: Formula: Income = Sales - Rework cost
Q: Define the problem List key assumptions List alternatives facing Greenfield Industries
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A manufacturing company is planning to install a new CO2 treatment module to the chimneys of its…
A: In the question , it is specifically stated that we can solve by any method of our own choice. Hence…
Q: A chemical company spent $480,000 to produce 144,000 gallons of a chemical, which can be sold for…
A: When there are two alternatives either to sell the product as it is or it should be further…
Q: On 1/4 / 20Χ0, in one of the two large machines used by company X, its gears broke, creating large…
A: Depreciation is the charge on fixed asset which has been used by the company during the period. This…
Q: Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be…
A: Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be…
Q: A chemical company spent $531,000 to produce 151,000 gallons of a chemical that can be sold for…
A: Formula: Increase in Net operating income = Increase in Revenue - increase in Processing costs.…
Q: A special contract had been offered to the company to serve as a special project manager to help the…
A: Here discuss about the details of the project which are taken care about the purchase of fruit bunch…
Q: Futura Company purchases the 70,000 starters that it installs in its standard line of farm tractors…
A: Solution:- Calculation of the financial advantage (disadvantage) of making the 71,000 starters…
Q: A company spills chemicals onto Russian land, causing damage that will cost $7million to clean.…
A: There is no environmental legislation but the company has clear green policies on its website…
Q: 1. A diesel engine uses type A filter and high-grade lubricating oil costing P55 per liter. With…
A: two type of filter and it running cost is given and based on the cost per hour purchase decision…
Q: Blossom Timber Corporation uses a machine that removes the bark from cut timber. The machine is…
A: The management most of the time faces difficulty in deciding whether to replace the old machine with…
Q: Micron Manufacturing produces electronic equipment. This year, it produced 7,500 oscilloscopes at a…
A:
Q: A cement plant produces 2,000,000 barrels of cement per year. The kilns emit 2 lb of dust for each…
A: Cost accounting: An accounting that deals in calculation of the total cost incurred by a…
Q: KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low while…
A: Working Note: Compute the research and development costs:
Q: Pollution Prevention, P2 Investment Heaps Company produces jewelry that requires electroplating…
A: Capital budgeting techniques: In finance, capital budgeting techniques are used to assess the impact…
Q: Bob's Bee Emporium makes organic honey, which Bob sells at farmers' markets. The value of his Bee…
A: In the given case, Bob's bee emporium and neighborhood property, Daisy's daycare center, have the…
Q: The KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low…
A: The KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low…
Q: e has a resort whose visitors use the lake for The village also has a chemical plant that dum waste…
A: Economic profit refers to the gap between the revenue generated by selling a product by a company…
Q: Signal mistakenly produced 1,475 defective cell phones. The phones cost $64 each to produce. A…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Bodine Corp. has a contract to deliver cleaning products to the community center. The contract with…
A: We will use the transaction cost per gallon which is calculated on the basis of an average of both…
Q: For this situation, a. Define the problem b. List key assumptions c. List alternatives facing…
A: Solution: Since as per BNED requirements, each question is answered to a maximum of three parts…
Q: Arsenic enters drinking water supplies from natural deposits in the earth or from agricultural and…
A: Answer - Benefit Cost Ratio - A benefit-cost ratio (BCR) means a ratio used in a Cost benefit…
Q: Fusion Metals Company is considering the elimination of its Packaging Department. Management has…
A: Dropping unprofitable products or segment: If the product or segment provide negative contribution…
Q: Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable…
A: " Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first 3…
Q: My neighbor, Mrs. Dubois, is the accountant for the cranberry processing plant. The plant has a…
A: The details regarding an new equipment has been given. Required Calculate Net Present Value
Q: “What a disaster,” cried Justin. “And the worst part is that we have no records to use in filing an…
A: The book or accounts of the company is destroyed due to fire in the plant. Thus, it wants to go for…
Q: TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its…
A: Contingent liability: It is a potential liability of a company that depends on a future event. It…
Q: Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $460,000. Shipping…
A: This question deals with the IAS 16 "property, plant and equipment" An PPE purchase initially should…
Q: Signal mistakenly produced 1,000 defective cell phones. The phones cost $60 each to produce. A…
A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…
Q: Walton Corporation is considering the elimination of one of its segments. The segment incurs the…
A: Whenever an organization decided to eliminate a segment the following cost would be avoidable:…
Q: When Hurricane Katrina struck New Orleans, there was a significant loss of aquarium fish at the…
A: Rate of return is computed on profit which is earned by a person or a firm. In the given question,…
Q: A waste-holding lagoon situated near the main plant of a chemical company receives sludge on a daily…
A: Equivalent annual cost is a capital budgeting decision making tool which allows to selection between…
Q: Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable…
A: Capital budgeting is the technique widely used by the management to evaluate the investment project…
Q: NUBD Manufacturing is considering dropping a product line. It currently produces a multipurpose…
A: Contribution per unit=Sale price per unit-Variable cost per unit=P 10 - P 6=P 4
Q: The production manager on the Ofon Phase 2 offshore platform operated by Total S.A. must purchase…
A: Salvage value refers to the estimated scrap value or sales value after utilizing the machine. It is…
Q: The KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low…
A:
Q: NUBD Manufacturing is considering dropping a product line. It currently produces a multipurpose…
A: Solution Given Variable cost per unit 6 Allocated factory overhead cost 3.5…
Q: Management of National Co. is considering whether to purchase a new model MX1 machine costing…
A: Here in this question, we are required to calculate the differential cost between the two…
Q: A plastic-manufacturing company owns andoperates a polypropylene production facility that converts…
A: PV is the current worth of cash flows that are expected to occur in the future.
Q: IVB. There are four factories in the city of Gotham that are polluting the waterways. Each firm…
A: The incremental costs spent while manufacturing more units of an item or service are referred to as…
Q: Name Paper Works Inc. makes paper products and dumps its waste into the Fish River. The waste has…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Chip and Dale run separate logging companies in the same forest. Both pollute the river flowing…
A: The companies will be reducing the debris only up to that much amount where the cost of reducing it…
Q: three neighbouring cities that are discharging two kinc lutants, A and B, into the river. Now the…
A:
Step by step
Solved in 2 steps
- Your boss believes the company's power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it: You can pay a pollution tax (Carbon Offsets) one time of $13,000,000 immediately. You can close the plant and install a power cable from the mainland to the Island. That will cost you $1,000,000 at the end of this year, $3,000,000 at the end of next year and then $750,000 forever for maintenance. You can retrofit the plant with scrubbers to reduce the emissions to make the plant green. That will cost $7.5m at the end of this year and $100,000 for 50-years for maintenance. Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island's plant. Assume, this comes as a surprise to you and you, have not saved any money in reserves, and you need to raise capital. Additional information is that market has a…There are four factories in the city of Gotham that are polluting the waterways. Each firm is currently producing 4 pounds of pollution; Managers will continue to pollute unless the local government intervenes. Managers will prefer to maximize economic profit by avoiding paying any costs to reduce or prevent pollution created by their business. The table below shows the marginal cost of cleaning up each pound of pollution. For example, the Gamma’s cost of cleaning up the third-pound of pollution is $180. Beta’s cost of cleaning up the first pound of pollution is $30. If Alpha cleaned up all four pounds of pollution, the total cost will be $320 (=40+40+80+160) i.e. add up the marginal cost. MARGINAL COST OF CLEANING UP POLLUTION Name of firm Alpha Beta Delta Gamma in $ in $ in $ in $ 1 st pound $40 $30 $80 $20 2 nd pound $40 $60 $90 $60 3 rd pound $80 $120 $100 $180 4 th pound $160…Your boss believes the company's power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it: You can pay a pollution tax (Carbon Offsets) one time of $13,000,000 immediately. You can close the plant and install a power cable from the mainland to the Island. That will cost you $1,000,000 at the end of this year, $3,000,000 at the end of next year and then $750,000 forever for maintenance. You can retrofit the plant with scrubbers to reduce the emissions to make the plant green. That will cost $7.5m at the end of this year and $100,000 for 50-years for maintenance. Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island's plant. Assume, this comes as a surprise to you and you, have not saved any money in reserves, and you need to raise capital. Additional information is that market has a…
- Two neighbouring farmers can use either high or low quantities of fertilizer. If they both use low quantities, then they each earn $1,200,000. If they both use high quantities, then they each earn $900,000. If one of the farmers uses low quantities and the other uses high quantities, then they respectively earn $500,000 and $1,000,000. What fine on high pesticide use causes both farmers to adopt a low quantity strategy? What other strategies can you suggest to cut down the amount of pesticide usage?Coyle Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Required: 1. Calculate the environmental cost per pound for each product. Which of the two products appears to cause the most degradation to the environment? 2. In which environmental category would you classify excessive use of materials and energy? 3. Suppose that the toxin releases cause health problems for those who live near the chemical plant. The costs, due to missed work and medical treatments, are estimated at 2,025,000 per year. How would assignment of these costs change the unit cost? Should they be assigned?Pollution Prevention, P2 Investment Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable metals. Electroplating uses large amounts of water and chemicals, producing wastewater with a number of toxic residuals. Currently, Heaps uses settlement tanks to remove waste; unfortunately, the approach is inefficient, and much of the toxic residue is left in the water that is discharged into a local river. The amount of toxic discharge exceeds the legal, allowable amounts, and the company is faced with substantial, ongoing environmental fines. The environmental violations are also drawing unfavorable public reaction, and sales are being affected. A lawsuit is also impending, which could prove to be quite costly. Management is now considering the installation of a zero-discharge, closed-loop system to treat the wastewater. The proposed closed-loop system would not only purify the wastewater, but also produce cleaner water than that currently being…
- Pollution Prevention, P2 Investment Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable metals. Electroplating uses large amounts of water and chemicals, producing wastewater with a number of toxic residuals. Currently, Heaps uses settlement tanks to remove waste; unfortunately, the approach is inefficient, and much of the toxic residue is left in the water that is discharged into a local river. The amount of toxic discharge exceeds the legal, allowable amounts, and the company is faced with substantial, ongoing environmental fines. The environmental violations are also drawing unfavorable public reaction, and sales are being affected. A lawsuit is also impending, which could prove to be quite costly. Management is now considering the installation of a zero-discharge, closed-loop system to treat the wastewater. The proposed closed-loop system would not only purify the wastewater, but also produce cleaner water than that currently being…Pollution Prevention, P2 Investment Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable metals. Electroplating uses large amounts of water and chemicals, producing wastewater with a number of toxic residuals. Currently, Heaps uses settlement tanks to remove waste; unfortunately, the approach is inefficient, and much of the toxic residue is left in the water that is discharged into a local river. The amount of toxic discharge exceeds the legal, allowable amounts, and the company is faced with substantial, ongoing environmental fines. The environmental violations are also drawing unfavorable public reaction, and sales are being affected. A lawsuit is also impending, which could prove to be quite costly. Management is now considering the installation of a zero-discharge, closed-loop system to treat the wastewater. The proposed closed-loop system would not only purify the wastewater, but also produce cleaner water than that currently being…IVB. There are four factories in the city of Gotham that are polluting the waterways. Each firm is currently producing 4 pounds of pollution; Managers will continue to pollute unless the local government intervenes. Managers will prefer to maximize economic profit by avoiding paying any costs to reduce or prevent pollution created by their business. The table below shows the marginal cost of cleaning up each pound of pollution. For example, the Gamma’s cost of cleaning up the third-pound of pollution is $180. Beta’s cost of cleaning up the first pound of pollution is $30. If Alpha cleaned up all four pounds of pollution, the total cost will be $320 (=40+40+80+160) i.e. add up the marginal cost. MARGINAL COST OF CLEANING UP POLLUTION Name of firm Alpha Beta Delta Gamma in $ in $ in $ in $ 1 st pound $40 $30 $80 $20 2 nd pound $40 $60 $90 $60 3 rd pound $80 $120 $100 $180 4 th pound…
- Russell Forest Products Limited needed to upgrade a burner at its sawmill in Cochrane, Ontario, to comply with the new air pollution standards. The new burner, which is used to burn the scrap wood from its sawing operations, will not only reduce the amount of pollution, but will supply heat for the plant facility, including the wood dryer. In order to encourage Russell Forest Products Limited in its compliance with the stan- dards, the Province of Ontario extended an interest-free loan of $400,000 on December 31, 2011. The only conditions in obtaining the interest-free loan are that the loan proceeds be applied directly to the construction costs and that the loan be repaid in full on December 31, 2019. RussellForest Products Limited borrowed the remaining funds from the bank for the construction of the burner and will be paying interest at the rate of 7% per year. Instructions (a) Discuss the issues related to obtaining the interest-free loan from the Province of Ontario. (b)…A plastic-manufacturing company owns andoperates a polypropylene production facility that converts the propylene from one of its cracking facilitiesto polypropylene plastics for outside sale. The polypropylene production facility is currently forced tooperate at less than capacity due to an insufficiencyof propylene production capacity in its hydrocarboncracking facility. The chemical engineers are considering alternatives for supplying additional propyleneto the polypropylene production facility. Two feasiblealternatives are to build a pipeline to the nearest outside supply source and to provide additional propylene by truck from an outside source. The engineersalso gathered the following projected cost estimates.• Future costs for purchased propylene excludingdelivery: $0.215 per lb.• Cost of pipeline construction: $200,000 per pipeline mile.• Estimated length of pipeline: 180 miles.• Transportation costs by tank truck: $0.05 per lb,utilizing a common carrier.• Pipeline operating…Heaps Company produces jewelry that requires electroplating with gold, silver, and other valuable metals. Electroplating uses large amounts of water and chemicals, producing wastewater with a number of toxic residuals. Currently, Heaps uses settlement tanks to remove waste; unfortunately, the approach is inefficient, and much of the toxic residue is left in the water thatis discharged into a local river. The amount of toxic discharge exceeds the legal, allowable amounts, and the company is faced with substantial, ongoing environmental fines. The environ-mental violations are also drawing unfavorable public reaction, and sales are being affected. A lawsuit is also impending, which could prove to be quite costly. Management is now considering the installation of a zero-discharge, closed-loop system totreat the wastewater. The proposed closed-loop system would not only purify the wastewater, but also produce cleaner water than that currently being used, increasing plating quality.…