Joh.com Policy TO work Assignment Help Save & E- Ched Problem 2-71 (Static) Cost Allocation and Regulated Prices (LO 2-3) The City of Imperial Falls contracts with Evergreen Waste Collection to provide solid waste collection to households and businesses. Until recently. Evergreen had an exclusive franchise to provide this service in Imperial Falls, which meant that other waste collection firms could not operate legally in the city. The price per pound of waste collected was regulated at 20 percent above the average total cost of collection Cost data for the most recent year of operations for Evergreen are as follows. Administrative cost Operating costs-trucks Other collection costs $ 400,000 1,280,000 320,000 Data on customers for the most recent year are as follows. Number of customers Waste collected (tons) Households 12,800 4,000 Businesses 3,000 12,000 The City Council of Imperial Falls is considering allowing other private waste haulers to collect waste from businesses, but not from households. Service to businesses from other waste collection firms would not be subject to price regulation. Based on information from neighboring cities, the price that other private waste collection firms will charge is estimated to be $0.04 per pound (= $80 per ton) (1 ton = 2,000 pounds) O Tch CH * 64F of 2 Joh.com Policy TO work Assignment Help Save & E- Ched Problem 2-71 (Static) Cost Allocation and Regulated Prices (LO 2-3) The City of Imperial Falls contracts with Evergreen Waste Collection to provide solid waste collection to households and businesses. Until recently. Evergreen had an exclusive franchise to provide this service in Imperial Falls, which meant that other waste collection firms could not operate legally in the city. The price per pound of waste collected was regulated at 20 percent above the average total cost of collection Cost data for the most recent year of operations for Evergreen are as follows. Administrative cost Operating costs-trucks Other collection costs $ 400,000 1,280,000 320,000 Data on customers for the most recent year are as follows. Number of customers Waste collected (tons) Households 12,800 4,000 Businesses 3,000 12,000 The City Council of Imperial Falls is considering allowing other private waste haulers to collect waste from businesses, but not from households. Service to businesses from other waste collection firms would not be subject to price regulation. Based on information from neighboring cities, the price that other private waste collection firms will charge is estimated to be $0.04 per pound (= $80 per ton) (1 ton = 2,000 pounds) O Tch CH * 64F of 2