Question: A university currently has a recycling program for paper waste. The fixed cost of running this program is $5,000 per year. The variable cost for
A university currently has a recycling program for paper waste. The fixed cost of running this program is $5,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $20. If the work is outsourced to a recycling company, the cost would be $70 per ton. If the forecasted demand is 900 tons, what should the university do? Use the Break-Even Excel template to find your answer. Round your answers to the nearest dollar.
Total cost of doing the job in-house: $
Total cost of outsourcing the job: $
So the best decision for the university is to -Select-do the job in-houseoutsource the jobItem 3 for a savings of $ .
Find the break-even point using the Excel Goal Seek tool. Round your answer to the nearest whole number. tons
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