Question

In: Accounting

The Coffman Investment Group wants to invest capital in the recycle industry. We are a for-profit-company....

The Coffman Investment Group wants to invest capital in the recycle industry. We are a for-profit-company. Can a recycled product find a market?

Create a narrative that will determine if a recycling company can be profitable.

Find an existing company or develop a new idea to recycle something different.

Use your best estimates (or actuals) to show an income statement that shows profit /loss for a process or recycled product. Include all costs from material sources and cost of labor and all overhead costs.

Visit a local recycling company (for profit) and ask to see financials (if they will allow that). Or research a company online.

Explain the costs to complete the recycle process and end products.

Please respond with a memo to Coffman Investment Group with backup data and assumptions.

Solutions

Expert Solution

Many of the consumers are sitting on waste material and due to this they do not have any usage of the waste and they wanted to have some more spaces from these wastes.Once the decrease in the commodities prices, it triggered to increase in the spending of the consumers. This is turned to more waste and its required to be disposed of. So that start up a recycling business could help for those consumers to get rid of the waste material and it also turns to your profit as well. If we look into the manufacturer are sourcing for recyclable waste for their usage and in their manufacturing procedures, recyclable business will be important part of the consumer and that manufacturer. So that recyclable business will be source of the waste material at a cheapest price and sell it at a profit to that manufacturer. It is only thing to find out what waste material could be recyclable. So that it is need to find out the material of wastage which are more in demand from the manufacturer side and high supply from the consumer side, which will more helpful to turn your business in making profits. Some of the waste materials to consider include plastics, cardboard, electronics and textiles. Metals are also a great option but usually require high initial investment and are highly regulated


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