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Samson Entertainment is a provider of cable, internet, and co-demand video services. Samson currently sends monthly bills to its customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Samson management is considering offering an option for it customers for paperless billing. 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). While Samson would to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have web access so the paper billing option will remain regardless of whether Samson adopts a paperless billing system or not. The cost of the paperless billing system would be $67, 600per 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 780000 per quarter (more than 780,000 bills per quarter would require a different computer system and is outside the scope Samson.) Samson has gathered its cost data for the past year by quarter for paper, toner cartridges, printer maintenance costs, and postage costs for the billing department. The cost data are as follows: Samson Entertainment is a provider of cable, internet, and co-demand video services. Samson currently sends monthly bills to its customers via the postal service. Because of a concern for the environment and recent increases in postal rates, Samson management is considering offering an option for it customers for paperless billing. 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). While Samson would to switch to 100% paperless billing, many of its customers are not comfortable with paperless billing or may not have web access so the paper billing option will remain regardless of whether Samson adopts a paperless billing system or not. The cost of the paperless billing system would be $67, 600per 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 780000 per quarter (more than 780,000 bills per quarter would require a different computer system and is outside the scope Samson.) Samson has gathered its cost data for the past year by quarter for paper, toner cartridges, printer maintenance costs, and postage costs for the billing department. The cost data are as follows

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