Considering outsourcing the daily room cleanup

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Reference no: EM131662701

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 times 50 equals the total rooms rented for the year). Tim's cost to clean a room is $12.50. The Duffy's Maid Service quote is $19.00 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $61,000.

Based on the given information related to costs or each o the options, he crossover point or Tim = ___ room nights (round your response to the nearest whole number).

Reference no: EM131662701

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