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Management Studies

Q. Susan Meyer, owner/manager of Meyers Motor Court in Key West, is considering outsourcing the daily room cleanup for her motel to Duffys Maid Service. Susan rents an average of 50 rooms for each of 365 nights (365 50 equals the total rooms rented for the year). Susans cost to clean a room is $12.50. The Duffys Maid Service quote is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motels name. Susan's Yearly fixed cost for space, equipment and supplies are $61,000.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9309303

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