Answer Happy

A high-technology centre is looking into the advisability of taking on a team of technicians to meet the maintenance and adjustment needs of some of its complex equipment. At present, this service is contracted out to the private firm TECNODATA, which charges the centre €50 per admission per month. The centre has an average of 500 admissions a month. The cost of purchasing common materials is estimated to be C20 per admission per month plus C10 per admission per month for purchasing spare parts if the team of maintenance technicians is taken as part of the staff of the centre. The fixed costs amount to €8,000 per month. However, the centre estimates that a promotion campaign for the high-technology equipment could increase the number of admissions to 600. In this case, if the centre decided to take on the team of technicians as part of its staff: Select one: O a. The fixed costs that would render this solution equivalent to that of contracting the services out to TECNODATA would be €10,000 per month. All the other answers are incorrect. The fixed costs that would render this solution equivalent to that of contracting the services out to TECNODATA would be €6,000 per month. O b. O c. O d. The fixed costs that would render this solution equivalent to that of contracting the services out to TECNODATA would be €12,000 per month.