Bingo is a firm producing a good in the B2C market. Every year, its production plants generate plastic waste X that cannot be reused, and is disposed for $10 per ton. The management is in contact with Tree, another firm interested in purchasing the plastic waste X. After mixing it with Z, a ton of X can replace another material, Y, which Tree is currently using for its production. The material Y is sold in the market for $50 per ton. The material Z cost $4 for each ton of X, and its mixing requires two hours of man work. a) Using the EVA analysis, compute the max price that Bingo could charge Tree for X, considering that: - Bingo spends $7 to transport one ton of waste material X in the production plant of Tree - one our of man work costs Tree $12.

b. considering the max price computed in a), what is the difference in profit for Bingo compared with the choice of disposal for each ton sold?

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