Hazmat Co transports solid hazardous waste to a disposal site. On an average Hazmat trucks carry 4 tons of wastes/trip for a total of 32000 tons/year. In the event of a truck overturn, it can be assumed that 2 tons of waste is spilled. DOT statistics indicate that 1 out of 4000 waste hauling trucks overturn during an average trip. Industry studies indicate that cleanups from transportation spill cost as much as $10000/ton. Calculate the total annual potential cost.

A.) Suppose A1 Insurance Co. offers to cover all costs accidents for $30000/year premium.

B.) A mandatory driver drug-testing program reduces the probability of overturns to 1 in 8000 trips, but the program costs $6000/year.

What should Hazmat do?