Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $100 per ton. Gluck's waste disposal company charges $55 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 120 tons of waste per month. What is the annual cost of stamping waste, including both the materials cost and the disposal cost?

Question

Quizplus · Accepted Answer

The annual cost of stamping waste includes the cost of the wasted materials and the disposal cost. The cost of wasted materials is $100 per ton, and the disposal cost is $55 per ton, totaling $155 per ton. With 120 tons of waste per month, the monthly cost is 120 tons * $155 = $18,600. Annually, this amounts to $18,600 * 12 = $223,200.

Gluck Metal Works Stamps Sheet Metal into Blanks That Are