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The city of Sunny Valley is

trying to decide how much to charge residents for per kilo of trash collection each week. They have estimated that 5,000 households and 250 businesses will use their service in the coming year. Average household trash generation is estimated to be 10 kilograms (about 22 pounds) per week. Average business trash generation is estimated to be 200 kilograms per week. The city will collect trash 52 weeks per year.

The city has Maintenance Facility Administrative Salaries Administrative Supplies 500,000 300,000 iis the tipping fee charged by the county landfill for trucks unloading waste. It is $2 per kilogram of trash.

There are two different types of trucks, one for households and one for businesses. The household trucks can serve a maximum of 1,000 households per week and the business trucks a maximum of 200 businesses per week. Fuel costs for the trucks are estimated to be $3.20 per gallon. The household trucks are estimated to consume 40,000 gallons of fuel per year and the business trucks 20,000. Supplies expense for each truck is estimated at $10,000 per year regardless of the type of truck. Depreciation expense on each household truck is $20,000 per year, $30,000 per year for each business truck. For labor expense, each household truck requires 2 operators and 1 maintenance worker. Each business truck requires 1 operator and 1 maintenance worker. The average salary per worker is $40,000. The city's charge policy is for the charge for each business to be twice that of the charge per household.

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