A university currently has a recycling program for paper waste. The fixed cost of running this program
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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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a Production volume 750 Produced InHouse Fixed cost 1500000 Unit variable co...View the full answer
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Related Book For 
OM6 operations supply chain management
ISBN: 978-1305664791
6th edition
Authors: David Alan Collier, James R. Evans
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