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 550,000 575,000 740,000 600,000 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 $ 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)? The company would save $ by using the paperless billing system. Requirement 3. What if only 20% 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. offer the paperless If only 20% of the mailings are converted to the paperless option, the company billing system because the company by using the paperless billing system. Earth currently sends monthly bills to its customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Earth manag considering offering an option to its customers for paperless billing. In addition to saving printing, paper, and postal costs, paperless billing will save energy and water (through reduced paper needs, waste disposal, and transportation needs). While Earth would like to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have online access, so the paper billing option will remain regardless of whether or not Earth adopts a paperless billing syste The cost of the paperless billing system would be $99,120 per quarter with no variable costs since the costs of the system are the salaries of the clerks and the cost of leasing the computer system. The paperless billing system being proposed would be able to handle up to 910,000 bills per quarter (more than 910,000 bills per quarter would require a different computer system and is outside the scope of the current situation at Earth)