Question: Jerico is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over

Jerico is continuing to search for ways to reduce its costs andits impact on the environment. PET plastic is melted and blown oversoda bottle molds to produce the bottles. One idea Jerico's engineers havesuggested is to retrofit the soda bottle molds and change the plastic

Jerico is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Jerico's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 25% less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.008 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $21,470, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $2.00 to $2.30.

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