1. Calculate the variable cost per bill mailed under the current paper-based billing system. 2. Assume that the company projects that it will have a total of 660,000 bills to mail in the upcoming quarter. If enough customers choose the paperless billing option so that 20% 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)? 3. What if only 10% of the mailings are converted to the paperless option (assume a total of 660,000 bills)? Should the company still offer the paperless billing system? Explain your rationale.
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