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Bees Please Inc. (BPI) is a company that maintains bee colonies and provides crop pollination serves. BPI has recently suffered negative impacts from Colony Collapse Disorder (CCD), a phenomenon in which bee colonies disappear or die out at a higher than normal rate.
Each year, BPI incurs costs in two distinct categories: maintenance and replacement. For Year 0, the last year during which PI was unaffected by CCD, the company maintained a total of 3,000 bee colonies and incurred total maintenance costs of 450,000 US dollars (US$). During crop pollination activities that year, BPI had to replace exactly 12% of its bee colonies--a rate of replacement considered normal in the beekeeping industry-at a total replacement cost of US$20 per colony.
For Year 1, the company continued to maintain a total of 3,000 bee colonies, incurring total maintenance costs of US$480,000. During crop pollination activities that year, BPI had to replace exactly 30% of its bee colonies, and attributed the entire increase in the number of colonies replaced to the effects of CCD.
Boss solve this please
Anchalanshri,