How to solve this problem and which formulas do I need to use?
The city of Sunny Valley is trying to decide how much to charge residents for per kilo of trash collection each week. They have estimated that 5,000 households and 250 businesses will use their service in the coming year. Average household trash generation is estimated to be 10 kilograms (about 22 pounds) per week. Average business trash generation is estimated to be 200 kilograms per week. The city will collect trash 52 weeks per year. The city has the following xed costs: Maintenance Facility 500,000 Administrative Salaries 300,000 Administrative Supplies 20,000 The only strictly variable cost is the tipping fee charged by the county landll for trucks unloading waste. It is $2 per kilogram of trash. The city additionally has costs related to the trash trucks. There are two different types of trucks, one for households and one for businesses. The household trucks can serve a maximum of 1,000 households per week and the business trucks a maximum of 200 businesses per week. Fuel costs for the trucks are estimated to be $3.20 per gallon. The household trucks are estimated to consume 40,000 gallons of fuel per year and the business trucks 20,000. Supplies expense for each truck is estimated at $10,000 per year regardless of the type of truck. Depreciation expense on each household truck is $20,000 per year, $30,000 per year for each business truck. For labor expense, each household truck requires 2 operators and 1 maintenance worker. Each business truck requires 1 operator and 1 maintenance worker. The average salary per worker is $40,000. The city's charge policy is for the charge for each business to be twice that of the charge per household. 0 Calculate the break-even charge 0 Calculate the charge necessary to generate a $500,000 surplus I Do a scenario analysis with a the] cost increase to $4 per gallon. Calculate the surplus or decit with the break-even charge as calculated before I Calculate the break-even charge with the increased price of fuel