Question: A university currently has a recycling program for paper waste

A university currently has a recycling program for paper waste. The fixed cost of running this program is $10,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company, the cost would be $65 per ton.
a. If the forecasted demand is 275 tons, what should the university do?
b. Find the break-even point.

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  • CreatedSeptember 17, 2015
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