$1.75 procesing and fixed costs
sUSan Meyer of Meyer's Motor Court in Key West, is considering outsourcing daily room clean-up
of the motel to Duffy's Maid service. Susan rents an average of 50 rooms for each of the 365 nights( 365 x 50=total rooms rented for the year) Cost to clean a room is $12.50.Maid Service is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. The annual fixed cost for space, equipment and supplies is $61,000. Which is the preffered process for Susan and why?
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- Posted on Jul 05, 2012 at 4:42:03PM
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- Posted on Jul 05, 2012 at 5:09:06PM