The owner of a motel is considering outsourcing the daily, Ask an Expert

Management Studies

The owner of a motel is considering outsourcing the daily room cleanup to Duffy's Maid Service. The manager rents an average of 50 rooms for each of 365 nights. The owner's cost to clean a room is $12. The Duffy's Maid Service quote is $18 per room plus a fixed cost of $24,000 for sundry items such as uniforms with the motel's room. The owner's fixed cost for space, equipment, and supplies is $60,000.
(a) Determine the crossover point for the two options. Please give the formula for calculating crossover points, at least one step of calculation, and the correct answer.
(b) Which option should be chosen and why?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9372147

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 what areas of an organization eg what functions do you

1. What areas of an organization (e.g., what functions) do you think are the best to centralize? Which are the best to decentralize? 2. What keeps you from delegating more? How can you overcome these obstacles? 3. If you ...

1 one of the most difficult skills to master for new

1. One of the most difficult skills to master for new supervisors is effective delegation. Discuss a time when a supervisor or other person in authority delegated a responsibility to you. How did you feel about receiving ...

1 the department manager is using a combination of methods

1. The department manager is using a combination of methods and has forecast sales of toasters at a local department store. The manager wants to compare an exponential smoothing forecast to a naive forecast to see which ...

1 can you share with me an abstract of the alcohol

1. Can you share with me an abstract of the alcohol advertising case study. 2. What potential problems and benefits are likely with early or flexible retirement programs? 3. Our ultimate goals are to decrease patient wai ...

Reorder point the same jewelry maker has recorded the

Reorder Point. The same jewelry maker has recorded the information below to calculate the reorder point. (Hint: Use the Z value corresponding to 95% confidence, Z = 1.96. Round all intermediate values (calculations not a ...

Assignment1 does national security outweigh the rights to

Assignment 1) Does National security outweigh the rights to individual privacy? Has there been a situation where the NSA took advantage of individuals' personal information? (Don't forget to give us at least one good cit ...

What is a brand what is the difference between a brand and

What is a brand? What is the difference between a brand and a product? Why is it important to know your customer when creating a brand? What are the benefits of a strong brand? Consider one of your favorite brands of foo ...

1 shipments of product x from a plant to a wholesaler are

1. Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units per week. The lead time from the plant to the wholesaler is 4 weeks. The wholesaler pays ...

1 what trends in workplace diversity should managers be

1. What trends in workplace diversity should managers be aware of. How to think about diversity: Which differences are important? 2. Who might participate in the social media interaction on behalf of a company? What stre ...

1 what issues about organizational structure surface as a

1. What issues about organizational structure surface as a result of Unilever's proposed strategies and objectives regarding sustainability? 2. Please select a NonProfit organization and briefly evaluate its financial po ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert