Skatelove Ltd is a manufacturer of skate boards, based in Jacksonville, Florida. The skateboards have three main

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Skatelove Ltd is a manufacturer of skate boards, based in Jacksonville, Florida. The skateboards have three main parts: the deck (wood and PVA glue); an aluminium truck (holding the wheels to the deck); and the wheels (polyurethane based). The wood used in manufacture of the boards is maple, sourced from the Great Lakes region of North America (generally between 60 and 80 years old), which is processed using machinery and large quantities of water into maple veneer (thin wood layers) and glue. Seven layers of veneer are used. The alternative to using wood is a high-tech plastic that is currently more than four times the price of the wood. Pricing of skateboards is very competitive and the additional cost could not be passed on to customers. Electricity use is high in the current production process due to the need to temperature control the wet wood for the deck ply and the heating process for the wheel manufacture. Skatelove has a design team that makes the business’s trademark shape template and uses computer programs to design artwork for decoration. Recycling of wheel material is expensive so these currently go to landfill.
The PVA glue is a non-toxic biodegradable water-based glue but the catalyst used in the manufacturing process is toxic so decks cannot be recycled for their wood component and go to landfill unless they can be repurposed. The majority of the non-water components of the glue are products of the petrochemical industry. The polyurethane based wheels are also made by a production process using petrochemical industry (oil-based production) products.
The aluminium is purchased from a company importing aluminium processed from bauxite mined in Weipa, Queensland, Australia. It can be recycled.
Skatelove skateboard trucks may be replaced every six months, the four wheels annually and the entire life of a skateboard averages three years. Skateboards are packaged in bubble wrap and cardboard and shipped within the United States and also overseas. Skatelove has been concerned about their environmental impact and accepts used skateboards returned by customers. The aluminium is sent to a recycling plant and the used decks are sent to a company that up-cycles the maple wood to make expensive designer jewellery and decorative household items. Some 20 per cent of customers currently return their used decks and the entire board at the end of its life.
Required:
a Prepare a qualitative social/environmental cost versus benefits analysis for the manufacture of these skateboards, including as many environmental impacts or externalities (costs not included in economic measurement) and social considerations as you can.
b Design a basic life-cycle analysis diagram for the skate boards.
Note: Actual life-cycle analysis would be much more complex. For your own interest only (not for this question), you may like to do further reading and research about the manufacture of skateboards and upcycling via the internet.
Some suggested sites: https://maplexo.com; http://www.madehow.com/Volume-6/Skateboard.html; https://
www.skatedeluxe.com/blog/en/10-things-you-didnt-know-about-the-construction-of-skateboard-decks.
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Accounting Information For Business Decisions Accounting

ISBN: 9780170446242

4th Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh

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