Q--- 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 $55 per ton.

If the forecasted demand is 850 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 ----------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?

Q---

A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:

For in-house manufacturing:

Annual fixed cost

=

$60,000

Variable cost per part

=

$120

For purchasing from supplier:

Purchase price per part

=

$200

For this information, use the Break-Even Excel template to find the best decision if the demand is 6,000. Round your answers to the nearest dollar.

Total cost of production: $ Total cost of outsourcing: $

The best decision is to -----------manufacture in-houseoutsourceItem 3 .

Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use the Excel Goal Seek tool. Round your answer to the nearest whole number.

---------parts