Reference no: EM1341581
Outsourcing Accounts' Receivable Function
Cal's Carpentry is considering outsourcing its accounts receivable function. Currently, Cal employs two full-time clerks and one part-time clerk to manage accounts receivables. Each full-time clerk has an annual salary of $36,000 plus fringe benefits costing 30 percent of their salary. The part-time clerk makes $18,000 per year but has no fringe benefits. Total salary plus fringe cost is $111,600. Cal estimates that each account receivable incurs a $10 variable cost. The Small Business Accounts Receivables Group (SBARG) specializes in handling accounts receivable for small- to medium-size companies. Doris Roberts from SBARG has offered to do the account receivables for Cal's Carpentry at a fixed cost of $75,000 per year plus $30 per account receivable. Next year, Cal expects to have 2000 accounts receivables.
Calculate the cost for Cal's Carpentry to continue doing accounts receivable in-house.
Total Cost = $
Calculate the cost for Cal's Carpentry to use SBARG to handle the accounts receivable.
SBARG cost =
Downhill Boards (DB), a producer of snow boards, is evaluating a new process for applying the finish to its snow boards. Downhill Boards currently incurs a fixed annual cost of $125,000 and has a variable cost of $0.90 per unit. Annual demand for the snow boards is 160,000. Fast Finish, Inc. (FFI) has made a technological breakthrough in snow board finish application. FFI will apply the finish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000.
What will it cost Downhill Boards to outsource the finishing process?
Total Cost from FFI = $.
_______________ is (higher/lower) than insourcing.
At what demand level does it make sense economically to outsource the finishing process?
Better to outsource when demand is _________________ more.
|
Show outsourcing versus internal staff
: Does it cost more or less to maintain an internal development staff and keep them trained in state-of-the-art technologies than it does to outsource development
|
|
Is offshore outsourcing good for the u.s
: Is Offshore Outsourcing good for the U.S and What are the positives and negatives that globalization brings to the U.S.A. and to other countries?
|
|
Problems related to outsourcing
: What problems were encountered and How could they have been resolved better and Do you feel the outsourcing helped the organization reduce costs/create value
|
|
Show the offshore outsourcing decisions
: Offshore outsourcing decisions - Show What criteria should company management consider when making offshore outsourcing decisions
|
|
Evaluate the cost for cals carpentry
: Evaluate the cost for Cal's Carpentry to continue doing accounts receivable in-house
|
|
Outsourcing labor overseas - problems and issues
: Outsourcing labor overseas, problems and issues - Should large chain stores continue to relocate labor overseas?
|
|
Explain the hr transformation at tsmc
: Analyze the HR issues at TSMC, and current issues in Human Resources Management. How to solve problems
|
|
Show the human resources outsourcing
: What are a few of the key points that you feel are centrally important to the strategic performance, ethical and/or social responsibility issues associated with outsourcing HRM duties
|
|
Ramifications of outsourcing
: Ramifications of Outsourcing - Some feel that Asian Americans are too cautious and reserved to be leaders where as others feel that Asian Americans are unscrupulous in business. Defend one of the positions. Be specific in your defense.
|