6.5. FINANCIAL ANALYSIS
TABLE 6.1: Differential costs associated with the year-long operation of 16 boxes. Differential costs are recurring incremental expenses incurred by Western because of Purple Recycling.
Differential Cost Analysis
For the year-long operation of 16 boxes Assumption
Utilities Expense $0.84 USD / year / box [11] 17.07
Server Hosting Expense $50 / month [12] 600.00
Maintenance Expense $150/year/machine [13] 2,400.00
Wages Expense 10 minutes to empty each box, 4 times a week, $25 / hour [9] 13,866.67
Reward Redemption Expense 12,000 a day on weekdays, 0 cups a day on weekends , 85% recycling rate, $0.01/cup 26,520.00 Total Differential Costs 43,403.74
The differential cost of operating 16 boxes is $43,403.74. …show more content…
Purple Recycling was unable to meet Constraint 1: Increase landfill diversion rate of coffee cups on campus to 90% as it will only increase the landfill diversion rate to an estimated 85%. Nevertheless, the 35% increase in diversion represents a significant improvement. TABLE 6.5: Final design’s compliance with design constraints. Purple Recycling did not meet Constraint 1.
Constraint Final Design Additional Information
1. Increase landfill diversion rate of coffee cups on campus to 90% to make Western a “Zero Waste campus”. No Increases landfill diversion to 85%.
2. Solution must be logistically feasible to deploy on Western’s campus. Yes
3. Deployable on Western’s campus within the 4-month summer to maintain operational efficiency. Yes (Theoretically) Deploying Purple Recycling on campus within the 4-month summer period is feasible. However, the proposed 3-phase implementation plan brings greater benefits. (See Section 6.2)
4. Solution must be economically viable. Implementation and operating costs must be less than $116,000. Yes Differential investments for 16 boxes: $4,384.16 (See Table 6.3)
Differential operating costs for 16 boxes: $43,403.74 / year (See Table 6.1)
5. Prototypes and/or illustrative materials must cost less than $25. N/A
7. DESIGN
TABLE 6.1: Differential costs associated with the year-long operation of 16 boxes. Differential costs are recurring incremental expenses incurred by Western because of Purple Recycling.
Differential Cost Analysis
For the year-long operation of 16 boxes Assumption
Utilities Expense $0.84 USD / year / box [11] 17.07
Server Hosting Expense $50 / month [12] 600.00
Maintenance Expense $150/year/machine [13] 2,400.00
Wages Expense 10 minutes to empty each box, 4 times a week, $25 / hour [9] 13,866.67
Reward Redemption Expense 12,000 a day on weekdays, 0 cups a day on weekends , 85% recycling rate, $0.01/cup 26,520.00 Total Differential Costs 43,403.74
The differential cost of operating 16 boxes is $43,403.74. …show more content…
Purple Recycling was unable to meet Constraint 1: Increase landfill diversion rate of coffee cups on campus to 90% as it will only increase the landfill diversion rate to an estimated 85%. Nevertheless, the 35% increase in diversion represents a significant improvement. TABLE 6.5: Final design’s compliance with design constraints. Purple Recycling did not meet Constraint 1.
Constraint Final Design Additional Information
1. Increase landfill diversion rate of coffee cups on campus to 90% to make Western a “Zero Waste campus”. No Increases landfill diversion to 85%.
2. Solution must be logistically feasible to deploy on Western’s campus. Yes
3. Deployable on Western’s campus within the 4-month summer to maintain operational efficiency. Yes (Theoretically) Deploying Purple Recycling on campus within the 4-month summer period is feasible. However, the proposed 3-phase implementation plan brings greater benefits. (See Section 6.2)
4. Solution must be economically viable. Implementation and operating costs must be less than $116,000. Yes Differential investments for 16 boxes: $4,384.16 (See Table 6.3)
Differential operating costs for 16 boxes: $43,403.74 / year (See Table 6.1)
5. Prototypes and/or illustrative materials must cost less than $25. N/A
7. DESIGN