Question: A university currently has a recycling program for paper waste. The fixed cost of running this program is $8,000 per year. The variable cost for

A university currently has a recycling program for paper waste. The fixed cost of running this program is $8,000 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 $70 per ton.
a. Find the break-even point.
b. If the university recycles 200 tons each year, what should they do?

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Using Equation 21 we compute Q FC VC 2 VC 1 80000 70 40 2666... View full answer

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