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 25 percent above the average total cost of collection.

Cost data for the most recent year of operations for Evergreen are as follows:

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 enllertion tims rollin not opprate leg ally in the Cty The pnce per polinrl nt waste roller terl was ree at i perrent ahnve the average tota nst ntrollprtinn Cost data for the most recent year of operations for Evergreen are as follows: 4 Operating 380,000 nata nn stomers for the mnst recent year are 3.300 4,500 Waste lected (to 4,000 The City Council of Impenal Falls Is consIdering allowing other private waste haulers to collect from businesses, but not trom households. Service to businesses from other waste collection tims would not be subject to price regulation. Based on waste Information from neignboring cities. The price that other private waste colle on firms will charge is estimated to be $0.05 per pound $90 per ton Evergreen's CEO has a pproached the city council with a proposal to change the way costs are allocated to households and businesEes, which wi result in drhterent rates for householdE and businesses. She proposes that adminiEt trative costs and truck operating costs be allocated Dased on ne number customers and ne otner c n costs be allocated based on pounds collected he total costs allocated to nousenolds would tnen De dMided Dy tne estimated numDer of pounds collected Trom households to detenmine the cost of collection. he rate would then be 25 percent above the cost. he rate for businesses would be determined using the same calculation Required Based on cost data from e most recent year, what is he price per pound charged by Fvergreen for waste collection under the c ent system (he same rate for both types of customers? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Based on cost and waste data from the most recent year, complete the following table to determine the price per pound charged to households and to businesses by Evergreen for waste collection if the CEO's proposal were accepted? (Do not round intermediate calculations. Round your "Average allocated cost per pound" and "Price" answers to 4 declmal places. useholds Uslnesses Allocated coet per custom Total located Price