Radom plans to make the landfill a profit center and charge the manufacturing plants for disposal of the trash. The landfill has sufficient capacity to operate for at least the next $20$ years. Other landfills are available in the area $($both private and municipal$),$ and both Radom manufacturing plants would be free to decide which landfill to use.

Required:

Compute the optimal transfer price.

Compute the total variable costs for a three$-$ton load of trash from one of the plants.