Question

7. A system sold and made by ACME is being reviewed for alternate treatment at the end of its useful life, By law ACME is required to accept the system from customers when the customer wants to dispose of it. ACME has arranged to accept systems through its network of retailers who ship the systems to them at their cost. ACME then pays a vendor to haul the systems away and dispose of it. Currently ACME pays 1.25 for each system to be disposed. The alternate treatment is to set up floor space to disassemble the systems into parts and to sell working items, recycle a portion of uncontaminated items, and to dispose of items not recycled. Because parts are separated the disposal cost is expected to be lower for many parts because once removed the part is viewed as general waste and not as industrial waste. But to break the system into parts ACME must incur a disassembly or separation cost of 1.60 per system, a cost clearly more than the full system disposal cost now paid. Using the text defined method for revenue retrieval at time of disposal as an example modified by the guidance given in this problem conduct an analysis of the product design below and answer the questions posed. All revenue and cost are per part unit. Revenue listed associated with preparing unit for resale or for recycling which is at the system level. So the upfront cost before any of the revenue below can be made and the disposal at a part level done is the disassembly cost. ACME must decide the economics of being a better industrial citizen otherwise sold or is raw selling price and does not include cost nit Resale fUnit Recycling Resold Revenuc 35 of Part Cost to Dispose Part Sold or 0.94 0.95 047 1.54 0.42 0.06 0.12 0.71 .14 If 100 percent of all parts were resold, what is the total revenue per system unit (all 5 parts of the system) ignoring any cost associated with disassembly and ignoring that part Five can only be disposed? bWhat is the average per part revenue for Part Four applying the percentages shown for resell and recycle ignoring any costs associated with disassembly or disposal? What is the average per part net revenue for Part Four after subtracting disposal cost ignoring disassembly cost? d) What is the average net revenue per system unit (all parts) applying the percentages of resold, recycled, and disposed and after subtracting the disassembly cost? If the revenue is negative place a negative sign in front of your answer

All parts please

Answer 1

a	If 100 percent of all parts were resold, the toal revenue per system unit
	will be:
	Part	Unit resale revenue
	One	0.94
	Two	0.95
	Three	0.47
	Four	1.54
	Five	0
	Total resale revenue per system unit	3.90
b	Average per part revenue for Part Four
	Unit Resale revenue	$1.54
	Percentage of part resold	40%
	Average resale revenue		$0.62
	Unit recycling revenue	$0.71
	Percentage of part recycled	10%
	Average recycling revenue		$0.07
	Average per part revenue for Part Four		$0.69
c	Average per part net revenue for Part Four after substracting disposal cost
	Average per part revenue for Part Four	$0.69
	Cost of disposal	$0.14
	Average per part net revenue	$0.55
d	Average net revenue per system unit
	Part	Unit resale revenue	Percent of Part resold	Average resale revenue	Unit Recycling Revenue	Percent of Part recycled	Average recycling revenue	Cost to dispose
	One	0.94	35%	0.33	0.42	30%	0.13	0.06
	Two	0.95	45%	0.43	0.90	20%	0.18	0.22
	Three	0.47	25%	0.12	0.11	60%	0.07	0.12
	Four	1.54	40%	0.62	0.71	10%	0.07	0.14
	Five	0	0%	-	0	0%	-	0.09
				1.49			0.44	0.63
	Average resale revenue	$1.49
	Average recycling revenue	$0.44
	Total average revenue	$1.93
	Less: Cost to dispose	(0.93)
	Disassembly cost	(1.60)
	Average net revenue per system unit	-0.60