Constellation Entertainment is a provider of cable, Internet, and on-demand video services. Constellation currently sends monthly...

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Constellation Entertainment is a provider of cable, Internet, and on-demand video services. Constellation currently sends monthly bills to its customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Constellation management is considering offering an option to its customers for paperless billing. (Click the icon to view additional information.) The company has gathered its cost data for the past year by quarter for paper, toner cartridges, printe maintenance costs, and postage costs for its billing department. The cost data are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the variable cost per bill mailed under the current paper-based billing system. The variable cost per bill mailed under the current paper-based billing system is $ 1.00 Requirement 2. Assume that the company projects that it will have a total of 600,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 30% of the mailings can be converted to paperless, how much would the company save from the paperless billing system (be sure to consider the cost of the paperless billing system)? By using the paperless billing system, the company would save $ 35,000 Requirement 3. What if only 20% of the mailings are converted to the paperless option (assume a total of 600,000 bills)? Should the company still offer the paperless billing system? Explain your rationale. If only 20% of the mailings are converted to the paperless option, should the company still offer the paperless billing option? Would this option result in a gain or loss? How much would the gain or loss be? Data table Get more help Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total paper, toner, printer maintenance, and postage costs $ Total number of bills mailed 560,000 $ 510,000 575,000 $ 515,000 740,000 $ 590,000 690,000 540,000 Constellation Entertainment is a provider of cable, Internet, and on-demand video services. Constellation currently sends monthly bills to its customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Constellation management is considering offering an option to its customers for paperless billing. (Click the icon to view additional information.) The company has gathered its cost data for the past year by quarter for paper, toner cartridges, printe maintenance costs, and postage costs for its billing department. The cost data are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the variable cost per bill mailed under the current paper-based billing system. The variable cost per bill mailed under the current paper-based billing system is $ 1.00 Requirement 2. Assume that the company projects that it will have a total of 600,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 30% of the mailings can be converted to paperless, how much would the company save from the paperless billing system (be sure to consider the cost of the paperless billing system)? By using the paperless billing system, the company would save $ 35,000 Requirement 3. What if only 20% of the mailings are converted to the paperless option (assume a total of 600,000 bills)? Should the company still offer the paperless billing system? Explain your rationale. If only 20% of the mailings are converted to the paperless option, should the company still offer the paperless billing option? Would this option result in a gain or loss? How much would the gain or loss be? Data table Get more help Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total paper, toner, printer maintenance, and postage costs $ Total number of bills mailed 560,000 $ 510,000 575,000 $ 515,000 740,000 $ 590,000 690,000 540,000