4. Garcia-Golding Recycling, Inc., collects and compacts aluminum cans and glass bottles in New York City. Its truck drivers currently wait an average of 15 minutes before emptying their loads for recycling. The cost of driver and truck time while they are in queues is valued at $60 per hour. A new automated compactor can be purchased to process truckloads at a constant rate of 12 trucks per hour (that is, 5 minutes per truck). Trucks arrive according to a Poisson distribution at an average rate of 8 per hour. If the new compactor is put in use, the cost will be amortized at a rate of $3 per truck unloaded. Evaluate the costs versus benefits of the purchase.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?