Sky Entertainment is a provider of cable, internet, and on-demand video services, Sky currently sends monthly bills to its The cost of the paperless billing system would be $127,200 per quarter with no variable costs since the costs of the customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Sky system are the salaries of the clerks and the cost of leasing the computer system. The paperless billing system being management is considering offering an option to its customers for paperless billing. In addition to saving printing, paper, proposed would be able to handle up to 890,000 bills per quarter (More than 890,000 bills per quarter would require a and postal costs, paperless billing will save energy and water (through reduced paper needs, reduced waste disposal, and different computer system and is outside the scope of the current situation at Sky.) reduced transportation needs. While Sky would like to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have Web access, so the paper billing option will remain, regardless of Sky has gathered its cost data for the past year by quarter for paper, toner cartridges, printer maintenance costs, and whether Sky adopts a paperless billing system or not. postage costs for the billing department. The cost data is as follows: (Click the icon to view the data.) Requirements Requirement 1. Calculate the variable cost per bil mailed under the current paper-based billing system. Using the high-low method, the variable cost per bill mailed under the current paper-based billing system is $. (Round your answer to the nearest cent.) Requirement 2. Assume that the company projects that it will have a total of 640,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 35% 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)? The company would save $ from using the paperless billing system. Requirement 3. What if only 25% of the mailings are converted to the paperless option (assure a total of 840,000 bills)? Should the company still offer the paperless billing system? Explain your rationale. (Enter any losses as a positive number.) If only 25% of the mailings are converted to the paperless option, the company offer the paperless billing system because the company V Strom using the paperless billing system. Enter your answer in each of the answer boxes. 2 Requirement 1. Calculate the variable cost per bill mailed under the current paper-based billing system. Using the high-low method, the variable cost per bill mailed under the current part Data Table billing option so that 35% of the mailings can be converted to paperless, how Requirement 2. Assume that the company projects that it will have a total of 640 much would the company save from the paperless billing system (be sure to con The company would save $from using the paperless billing system. Requirement 3. What if only 25% of the mailings are converted to the paperless number.) Quarter 1 Quarter 2 Quarter 3 Quarter 4 billing system? Explain your rationale. (Enter any losses as a positive Total paper, toner, printer maintenance, and postage costs ... Total number of bills mailed $ 672,700 $ 695,000 $ 800,000 $ 700,000 550,000 575,000 740,000 600,000 If only 25% of the mailings are converted to the paperless option, the company from using the paperless billing system. Print Done Enter your answer in each of the answer boxes. O Sky Entertainment is a provider of cable, internet, and on-demand video services. Sky currently sends monthly bills to its The cost of the paperless billing system would be $127,200 per quarter with no variable costs since the costs of the customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Sky system are the salaries of the clerks and the cost of leasing the computer system. The paperless billing system being management is considering offering an option to its customers for paperless billing. In addition to saving printing, paper, proposed would be able to handle up to 890,000 bills per quarter (More than 890,000 bills per quarter would require a and postal costs, paperless billing will save energy and water (through reduced paper needs, reduced waste disposal, and different computer system and is outside the scope of the current situation at Sky.) reduced transportation needs.) While Sky would like to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have Web access, so the paper billing option will remain, regardless of Sky has gathered its cost data for the past year by quarter for paper, toner cartridges, printer maintenance costs, and whether Sky adopts a paperless billing system or not. postage costs for the billing department. The cost data is as follows: M (Click the icon to view the data.) Radnicamente i Requirements Requirement 1. Calculate the variable cost per bill mailed under the current paper-base perless billing option so that 35% of the mailings can be converted to paperless, how Using the high-low method, the variable cost per bill mailed under the current paper-bas Requirement 2. Assume that the company projects that it will have a total of 640,000 bill much would the company save from the paperless billing system (be sure to consider th The company would save $ from using the paperless billing system. Requirement 3. What if only 25% of the mailings are converted to the paperless option number perless billing system? Explain your rationale. (Enter any losses as a positive 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 840,000 bills lo mail in the upcoming quarter. If enough customers choose the paperless billing option so that 35% 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 25% of the mailings are converted to the paperless option (assume a total of 640,000 bills)? Should the company still offer the paperless billing system? Explain your rationale. If only 25% of the mailings are converted to the paperless option, the company v s from using the paperless billing system. Print Done Enter your answer in each of the answer boxes. 2