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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $75 per ton. Gluck's waste disposal company charges $50 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 120 tons of waste per month.

Gluck has developed a new system that would increase the efficiency of its stamping process. The new system has an annual cost of $45,000, but would reduce stamping waste by 50%, the remaining waste would be sold to a recycler for $30 per ton. What is the net savings if Gluck implements this new system?
A) $72,000
B) $147,600
C) $21,600
D) $102,600
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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