Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for hi
Posted: Wed Apr 27, 2022 1:25 pm
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
$13.50.
The Duffy's Maid Service quote is
$18.00
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
$65,000.
Part 2
Based on the given information related to costs for each of
the options, the crossover point for Tim =
enter your response here
room nights (round your response to the nearest whole
number).
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
$13.50.
The Duffy's Maid Service quote is
$18.00
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
$65,000.
Part 2
Based on the given information related to costs for each of
the options, the crossover point for Tim =
enter your response here
room nights (round your response to the nearest whole
number).