Question: A university currently has a recycling program for paper waste. The fixed cost of running this program is $15,000 per year. The variable cost for

A university currently has a recycling program for paper waste. The fixed cost of running this program is $15,000 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 750 tons, what should the university do?

b. Find the break-even point?

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