HPU currently has a recycling program for paper waste. The fixed cost of running this program is $18,500 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $30. If the work is outsourced to a recycling company, the cost would be $43 per ton.     If the forecasted demand is 1,500 tons, what should the university do?    Use the Break-Even Excel template to find your answer.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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HPU currently has a recycling program for paper waste. The fixed cost of running this program is $18,500 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $30. If the work is outsourced to a recycling company, the cost would be $43 per ton.

  

 If the forecasted demand is 1,500 tons, what should the university do? 

 

Use the Break-Even Excel template to find your answer.

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