Moonlight Entertainment is a provider of cable, Internet, and on-demand video services Moonlight currently sends monthly bil to its customers via the postal Service. Because of concom for the environment and recent increases in postal rates, Moonlight management is considering offering an option to its customers for paperless biling (Click the icon to view additional information The company has gathered its cost data for the past year by quarter for paper toner cartridges, printer maintenance costs, and postage costs for its biling department. The cost data are as follows (Click the icon to view this data) Read the requirements Requirement 1. Calculate the varlablo cost per be mailed under the current paper-baned biling system The variable cont perbilt mailed under the current paper-based biting womi Requirement 2. Assume that the company projects that it will have a total of 760,000 bills to mail in the upcoming quarter. If enough customers choose the papodos billing option so that 45% of the maings can be converted to paperless, how much would the company save from the paperless being system (be sure to consider the cost of the paperless billing system) By thing the paperles biling system, the company would save Requirement 3. What if only 40% of the mallings are converted to the paparloss option (nsoume a total of 700,000 bits) should the company all that the paperless bring system? Explain your rational If only 40% of the mailings are converted to the paperless option, should the company still offer the paperless billing option? Would this option result in a gain or loss? How much would the gain or loss bo? More Info co - 2 ne ter. If enc system ( pa In addition to saving printing, paper, and postal costs, paperless billing will save energy and water (through reduced paper needs, reduced waste disposal, and reduced transportation needs.) Although Moonlight would like to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have online access, so the paper billing option will remain regardless of whether Moonlight adopts a paperless billing system or not. The cost of the paperless billing system would be $288,600 per quarter with no variable costs since the costs of the system are the salaries of the clerks and the cost of leasing the computer system. The paperless billing system being proposed would be able to handle up to 990,000 bills per quarter (more than 990,000 bills per quarter would require a different computer system and is outside the scope of the current situation at Moonlight), 131 rat 1)? Shoul of II opt vo . Data Table th los Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total paper, toner, printer maintenance, and postage costs Total number of bills mailed 689,400 $ 616,000 705,000 $ 621,000 810,000 $ 750,000 720,000 625,000 m al Print Done m Ime por ? -X the paperless billing sy Requirements Inpan ment 3. What if only 409 your rationale 50% of the mailings are ny still offer the paperle this option result in a g much would the gain orld 1. Calculate the variable cost per bill mailed under the current paper-based billing system. 2. Assume that the company projects that it will have a total of 760,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 45% of the mailings can be converted to paperless, how much would the company save from the paperless billing system (be sure to consider the cost of the paperless billing system)? 3. What if only 40% of the mailings are converted to the paperless option (assume a total of 760,000 bills)? Should the company still offer the paperless billing system? Explain your rationale. Print Done he Re