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###### Business · Accounting
Question details

Chad Pty Ltd (CPL) is preparing to design and implement sustainability systems and processes. You find (as the environmental director) that energy is a key resource for business operations; first for heating water and second for operational and security lighting. Management of these key resources for business operations can save the company money. Therefore the first step is to measure the water flow at the premises and the second step is to calculate the cost of heating water for 320 days each year. The second key resource for business operations is energy for operational and security lighting for 365 days each year. You report directly to William South, the CFO. The daily rinsing process for fruit and vegetables requires the tap to run for 55 minutes per day and use 11 litres of water flow per minute. The water is heated to 65oC. The table below provides the number of kWh required to heat one kilolitre of water to various temperatures

Hot Water Temperature                             kWh required make one kilolitre of hot water

45 oC                                                                  56kwh

55 oC                                                                  65kwh

65 oC                                                                  84kwh

75 oC                                                                 103kwh

CPL electricity usage for lighting for operational and security purposes is set out below.

Number of lights:             12 lights

Light Wattage per light: (Fluorescent lights)                        50 watts or 0.050 kWh Light Wattage:

Electricity cost per kW Light Wattage:                                 $0.25 /kWh: Hours of lighting use per day: 18 hours Required: Please note: all your answers should be to two decimal points (cents) a) If the business uses water heated to 65oC, assuming the electricity cost per kilolitre is$0.25 per kWh, calculate the annual electricity cost to the business associated with the heating of water used to 65o (4 marks)
b) If the business uses water heated to 55oC (assuming the electricity cost per kilolitre is \$0.25 per kWh), calculate the dollar saving if this lower temperature is used.
(4 marks)

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