ssume that a recently decommissioned aircraft carier, the USS Bonefish, is estim
ID: 2403270 • Letter: S
Question
ssume that a recently decommissioned aircraft carier, the USS Bonefish, is estimated to contain approximabely 40 tons of recyclable materials able to be sold for appromatity S334 min Telow bid for dsmarting and tansporting the ship materials to appropilbolses 535 3 mion Recydng and dsutg he ship would create about 500 jobs for about a year in the Rust Beit This geographic area has been experiencing recond-high unemployment rates in recent years Read the resuiremerts Requirement 1. is it more nancially advantageous to sink the ship (assume that it costs approximately $1.3 milion to tow a ship out to sea and sink it) or t diamantie and recycle ? Show your calculations.(Enter dollar amounts in milons. Enter the net difference with a minus sign or parentheses is the cost to diamande and recyde is less thah the cost to sink) Choose trom any list or enter any number in the input felds and then contirnue to the next question Next . Previous MacBook Pro 0 A S D F G HJ eturn command optionExplanation / Answer
Alternative 1: Dismantling and Recycling the materials
Alternative 2: Low the ship out to sea and sink the ship
Dismantling &Transportation Exp
Relevant Cost
$ 35.3 million
Cost of sinking the ship
Relevant Cost
$ 1.3 million
Contribution from sale of Recyclable Materials
Relevant Revenue
$ 33.4 million
Net Cost of Dismantling& Recycling)=Cost of dismantling-Contribution from sale of dismantled material
$ 1.9 million
Cost to dismantle and Recycle ( $ 35.3-$ 33.4) = $ 1.9 million
Less: Cost of sinking the ship = $ 1.3 million
Net difference =0.6 million
Conclusion: It is financially advantageous to sink the ship .The cost of sinking the ship is less than the cost of dismantling and selling the recycled material by 0.6 million but a point to be noted is that though the cost of dismantling & recycling materials is higher , it provides 500 jobs for a year in a geographical area that is experiencing record high unemployment rates in recent years.
Dismantling &Transportation Exp
Relevant Cost
$ 35.3 million
Cost of sinking the ship
Relevant Cost
$ 1.3 million
Contribution from sale of Recyclable Materials
Relevant Revenue
$ 33.4 million
Net Cost of Dismantling& Recycling)=Cost of dismantling-Contribution from sale of dismantled material
$ 1.9 million
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