(Answered) Question - outsourcing decisionsunny hazel the manager of

Accounting

Question - Outsourcing decision

Sunny Hazel, the manager of Cyber Web Services, must decide whether to hire a new employee or to outsource some of the web design work to Ky To, a freelance graphic designer. If she hires a new employee, she will pay $32 per design hour for the employee to work 600 hours and incur service overhead costs of $2 per design hour. If she outsources the work to Ky To, she will pay $36 per design hour for 600 hours of work. She can also redirect the use of a computer and server to generate $4,000 in additional revenue from web page maintenance work.

Question: Should Cyber Web Services hire a new designer or outsource the work to Ky To?

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