A university currently has a recycling program for paper waste. The fixed cost of running this program is $5,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company, the cost would be $80 per ton. If the forecasted demand is 800 tons, what should the university do? Use the Break-Even Excel template in MindTap to find your answer. Round your answers to the nearest dollar. Total cost of doing the job in-house: $ ____ Total cost of outsourcing the job: $ ____ So the best decision for the university is to ________ (do the job in house/ outsource the job) for a savings of $ _____ . Find the break-even point using the Excel Goal Seek tool. Round your answer to the nearest whole number
A university currently has a recycling program for paper waste. The fixed cost of running this program is $5,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company, the cost would be $80 per ton.
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If the forecasted demand is 800 tons, what should the university do? Use the Break-Even Excel template in MindTap to find your answer. Round your answers to the nearest dollar.
Total cost of doing the job in-house: $ ____
Total cost of outsourcing the job: $ ____So the best decision for the university is to ________ (do the job in house/ outsource the job) for a savings of $ _____ .
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Find the break-even point using the Excel Goal Seek tool. Round your answer to the nearest whole number.
____ tons
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