RECYCLING ECONOMICS (Grade 7-8)

Recycling is essentially a new business; it has been done for years but only where convenient and economically profitable. Now we are facing problems because we produce so much garbage.

We are now implementing recycling laws, and we are finally starting to pay the real cost of disposal. Recycling is becoming a very popular cost-avoidance method of disposal.


MATH PROBLEMS: RECYCLING ECONOMICS

Most recycling business expenses are fixed costs. These costs remain the same no matter how many pounds of cans the center collects per month.

Other expenses depend on how many cans the center collects. These are called variable costs.

1. Can you list some examples of fixed costs that a recycling center might have?

2. Can you list some examples of variable costs that a recycling center might have?

3. If a recycling center's fixed costs total $1,200 a month and 60,000 pounds are being processed, how much is being spent per pound for fixed cost?

$ per pound
4. Using the information from question 3, how much per pound is left for variable cost and profit out of a 5 cent per pound difference between the amount paid can collectors and the amount received from an aluminum company?
$ per pound
5. If the center can process 120,000 pounds a month without increasing fixed costs of $1,200, how much is then being spent per pound for fixed costs?
$ per pound
6. How much per pound is left for variable costs and profit?
$ per pound
7. Can you explain why a recycling business may earn more money as the number of cans collected increases?
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Solution
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