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Solar Entertainment is a provider of cable, Internet, and on-demand video services (Click the icon to view additional information) Solar has gathered its cost
Solar Entertainment is a provider of cable, Internet, and on-demand video services (Click the icon to view additional information) Solar has gathered its cost data for the past year by quarter for paper, toner cartridges, printer maintenance costs, and postage costs for the billing department (Click the icon to view the cost data) Requirement 1. Calculate the variable cost per bill mailed under the current paper-based billing system. Use the high-low method The vanable cost per bill mailed under the current paper-based billing system is Requirement 2. Assume that the company projects that it will have a total of 680,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 25% 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)? By using the paperless billing system, the company would save Requirement 3. What if only 15% of the mailings are converted to the paperless option (assume a total of 680,000 bills)? Should the company still offer the paperless billing system? Explain your rationale OA. If only 15% of the mailings are converted to the paperless option, the company should continue to offer the paperless billing system because the company saves $20,000 by using the paperless billing system OB. If only 15% of the mailings are converted to the paperless option, the company should continue to offer the paperless billing system because the company saves $45,060 by using the paperless billing system OC. If only 15% of the mailings are converted to the paperless option, the company should no longer offer the paperless billing system because the company loses $45,960 by using the paperless billing system
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