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The cost data are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ 672,700 $ 695,000 $ 800,000 $ 700,000 Total paper, toner,
The cost data are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ 672,700 $ 695,000 $ 800,000 $ 700,000 Total paper, toner, printer maintenance, and postage costs Total number of bills mailed 550,000 10 575,000 740,000 600,000 Requirement 1. Calculate the variable cost per bill mailed under the current paper-based billing system. Use the high-low method The variable cost per bill mailed under the current paper-based billing system is $ n... An th th a rumniante that it will have a total of 740 nn hille tn mail in the linemine arter Ifanu ietmare chance the Requirement 2. Assume that the company projects that it will have a total of 740,000 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 systeln (be sure to consider the cost of the paperless billing system)? Requirement 3. What if only 35% of the mailings are converted to the paperless option (assume a total of 740,000 bills)? Should the company still offer the paperless billing system? Explain your rationale offer the paperless If only 35% of the mailings are converted to the paperless option, the company billing system because the company by using the paperless biling system
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