This question 1 poin ple Submit test Moonlight Enter monthly bills i postal rates ment is a provider of cable, Internet Ion-demand video services Moonlight ouently sends gement is considering offering an opto customers for pang The company bing department The Read Requirement 1. Cuate the vertible cost per bill mated under the curent paper-based billing system The variable cost p the current paper-based billing system is Requirement 2. Assume that the company projects that it will have a total of 760,000 bill to mall in the upcoming quarter. If enough customers choose the papers billing r much would the company save from the paperless billing system (be sure to consider the By using the paperless billing system, the company would save Requirement 3. What if only 40% of the malings are converted to the paperless option (assume a total of 760,000 bits)? Should the company will offer the paperless billing system? Explain your If only 40% of the mailings are converted to the paperless option, should the company still offer the paperless billing option? Would this option result in a gain or loss? How much would the gain or loss be? In addition to saving printing, paper, and postal costs, paperless billing will save energy and water (through reduced paper needs, reduced waste disposal, and reduced transportation needs.) Although Moonlight 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 Moonlight adopts a paperless billing system or not. The cost of the paperless billing system would be $288,600 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 990,000 bills per quarter (more than 990,000 bills per quarter would require a different computer system and is outside the scope of the current situation at Moonlight). Data table 45% Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total paper, toner, printer maintenance, and postage costs $ 689,400 $ 705,000 $ 810,000 $ 720,000 Total number of bills mailed 616,000 621,000 750,000 625,000 Print Done