Considering outsourcing the daily room cleanup

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Reference no: EM131662598

Tim? Urban, owner/manager of? Urban's Motor Court in Key? West, is considering outsourcing the daily room cleanup for his motel to? Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights? (365 × 50 equals the total rooms rented for the? year). Tim's cost to clean a room is $13.00. The? Duffy's Maid Service quote is $19.00 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the? motel's name.? Tim's annual fixed cost for? space, equipment, and supplies is $65,000.

A) Based on the given information related to costs for each of the? options, the crossover point for Tim? = ? room nights ?(round your response to the nearest whole ?number).

B) If the number of room nights is less than the crossover point, then (outsource or not outsource) is the best option available to Tim.

C) Based on the given room nights that Tim expects to rent (18,250), the best option is (outsource or not outsource).

Reference no: EM131662598

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