wo firms, A and B, each currently dump 168 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 90 pollution permits. The abatement costs of one ton of pulltion is $122 for Firm A and $147 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?

wo firms, A and B, each currently dump 168 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 90 pollution permits. The abatement costs of one ton of pulltion is $122 for Firm A and $147 for Firm B. What would be the total cost of reducing pollution, if the government does NOT allow the firm to trade the permits between each other?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $20,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $13,000. a. If Joe owns the rights to the river, which of the following is the most likely outcome? O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute. O Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. b. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome? Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute.
a ABC company purchased a machine use to their business whose first cost is P 500,000 with an estimated life of 10 years. The estimated salvage value of the equipment at the end of its lifetime is P 25,000. Determine the depreciation charge and book value at the end of various years using the straight line method of depreciation.
You have just been hired as an intern with XYZ Sdn. Bhd. This company manufactures sportswear. Since you have taken a course on Energy and Sustainable Development in UNITEN, your supervisor has asked your opinion on how to improve the life-cycle sustainability of one their products, the XYZ Running Shoes. Prepare a brief outline of your recommendation, which should include FIVE (5) improvements that the company can implement to improve the sustainability of their product.
Sun TV sells TV sets. It does not sell smart TVs so customers do not come to Sun TV if they want to purchase smart TVs. Sun TV wants to start selling smart TVs and will only sell smart TVs to customers to whom they advertise. Managers use customer information (income level, previous purchase history) to decide which customers they should target. The team needs to decide how sure it must be in predicting customer interest in a smart TV. If it is too cautious, it will choose a very high cutoff probability and only market to customers who it believes are very likely to be in the market for a smart TV. This may cause them to miss out on many customers. If they are too aggressive and choose a low cutoff probability, they may identify more individuals interested in buying smart TVs but also end up wasting marketing dollars on customers who are not interested in purchasing smart TVs. To choose a cutoff probability, the team develops the confusion matrices below for two cutoff probabilities on…
A developer has requested your advice for the selling price per sg.m, of flats in an area of your choice. You should retrieve 20 asking prices for residential flats in your preferred area from agents' websites. Proceed with all necessary adjustments and estimate a value per sg.m, for a typical 2 bedroom flat that he is aiming to build. Additionally, retrieve asking rental prices for the same area and proceed with the necessary adjustments in order to estimate the ARY. Present your analysis and the way of thinking in 500 words and also support your opinion with an excel table showing your adjustments.
B& Co. is a large manufacturer if an electronic product (NM65). It is the market leader in the particular product segment. The market size is increasing due to increasing popularity of its product. B& Co. has received an offer from a manufacturer of electronic products to produce NM 65 on half of B& Co. and directly supply to the customers of the Northern region. The billing on the customer will done by B& Co. The offer is economically attractive. Required: Write a note on what qualitative factors should be considered before deciding in favour or against accepting the offer.
Please show formula and solution There are approximately 15,000 households in the Sampaloc, Manila. Over the 6-month lockdown, a number of households purchased one (1) unit of air conditioner. The breakdown of the brands purchased is as follows: Super Lamig - 4,688 households Frozen to Death - 1,456 households Feeling Airy - 2,355 households Typhoon - 3,899 households Based on the above data, what is the market penetration of air conditioning units in Sampaloc, Manila during the 6-month lockdown period?
Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago. They cost $65,000 each, including the charging stand. In practice, it was found that they did not hold a charge as long as claimed by the manufacturer, so operating costs are very high. As a result, their current salvage value is about $9,000. Chatham is considering replacing them with propane models. New propane forklifts cost $58,000 each. After one year, they have a salvage value of $40,000, and thereafter decline in value at a declining-balance depreciation rate of 20 percent, as does the electric model from this time on. The MARR is 8 percent. Operating costs for the electric model will be $19,000 this year, rising by 12 percent per year. Operating costs for the propane model will initially be $11,000 over the first year, rising by 12 percent per year. Should Chatham Automotive replace the forklifts now? Find EAC for both propane and elctric forklifts. P.S. Show…
Pendryl Office Supplies is evaluating the profitability of leasing a photocopier for its customers to use on a self serve basis at 10 cents/copy. The copier may be leased for $300 per month plus 1.5 cents per copy on a full service contract. Pendryl can purchase paper at $5 per 500 sheet ream. Toner costs $100 per bottle, which in normal use will last for 5000 pages. Pendryl thinks that there are additional other costs of 0.5 cents per copy. A. How many copies per month must be sold in order to break even? (6000 copies/month) B. What will be the increase in monthly profit for each 1000 copies sold above the break-even point? ($50 per month)
Benetton is studying two alternative contracts with a retailer for a seasonal product, Revenue-Sharing contract and Quantity Flexibility contract. Attributes and terms of the two contracts are presented below. Profit Sharing Contract: Benetton production cost is $20, and it charges the retailer a low wholesale price of $25. The retailer prices to the customers at $55 per unit. The retailer forecasts demand to be normally distributed, with a mean of 4,000 and standard deviation of 1,600. Any unsold product are discounted to $15, and all sell at this price. The retailer will share 30% of the revenue with Bennetton, keeping 70% for itself. Quantity Flexibility Contract: If the retailer orders O units, Benneton is willing to provide up to another 35% if needed. Benetton's production cost is $20, and it charges the retailer a wholesale price of $36. The retailer prices to the customers at $55 per unit. Any unsold units can be sold by the retailer at a salvage value of $25. Bennetton can…
A rural cooperative purchased a trencher at a cost of P230,500.00. It is estimated that the trencher will have a salvage value of P25,000.00 after digging 300,000 meters of irrigation canals. Determine the book value of the trencher after two years, if it was used to dig 50,000 meters on the first year and 75,000 meters on the second year. (Ans. P144,875.00)