The Brew House needs to decide which of two coffee maker designs is better envir
ID: 387884 • Letter: T
Question
The Brew House needs to decide which of two coffee maker designs is better environmentally. Using the following tables, determine which model is the better design alternative
Brew Master
Part
Resale Revenue
per Unit
Recycling Revenue per Unit
Processing Cost per Unit
Disposal Cost per Unit
Metal frame
$1.75
$2.89
$1.27
$0.75
Timer
0.48
0.50
1.50
1.46
Plug/Cord
4.27
5.60
6.20
0.25
Coffee pot
2.55
2.46
2.15
1.28
Brew Mini
Part
Resale Revenue
per Unit
Recycling Revenue per Unit
Processing Cost per Unit
Disposal Cost per Unit
Plastic frame
$1.40
$3.25
$0.85
$0.85
Plug/ cord
3.98
4.30
5.28
0.00
Coffee pot
2.22
2.82
2.15
1.28
a- Revenue retrieval for Brew Master = $
b- Revenue retrieval for Brew Mini = $
c- The best design alternative is
Part
Resale Revenue
per Unit
Recycling Revenue per Unit
Processing Cost per Unit
Disposal Cost per Unit
Metal frame
$1.75
$2.89
$1.27
$0.75
Timer
0.48
0.50
1.50
1.46
Plug/Cord
4.27
5.60
6.20
0.25
Coffee pot
2.55
2.46
2.15
1.28
Explanation / Answer
Solution:
Brew Master:
Total resale revenue per unit= ($1.75+0.48+4.27+2.55) = $9.05
Total recycling revenue per unit= ($2.89+0.50+5.60+2.46) =$11.45
Total revenues per unit= ($9.05+$11.45) = $20.5
Total processing cost per Unit= ($1.27+1.50+6.20+2.15) = $11.12
Total disposal cost per unit= ($0.75+1.46+0.25+1.28) = $3.74
Total cost per unit= ($11.12+$ 3.74) = $14.86
Revenue retrieval for Brew Master = Total revenues per unit - Total cost per unit
Revenue retrieval for Brew Master= ($20.5- $14.86) = $5.64
Brew Mini:
Total resale revenue per unit= ($1.40+ 3.98+ 2.22) = $7.6
Total recycling revenue per unit= ($3.25+ 4.30+ 2.82) = $10.37
Total revenues per unit= ($ 7.6 +$ 10.37) = $17.97
Total processing cost per Unit= ($ 0.85+ 5.28+ 2.15) = $8.28
Total disposal cost per unit= ($ 0.85+ 0.00+ 1.28) = $2.13
Total cost per unit= ($ 8.28 + $ 2.13) = $10.41
Revenue retrieval for Brew Mini = Total revenues per unit - Total cost per unit
Revenue retrieval for Brew Mini= ($17.97- $ 10.41) = $7.56
a- Revenue retrieval for Brew Master = $5.64
b- Revenue retrieval for Brew Mini = $7.56
c- The best design alternative is Brew Mini
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