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?