Considering outsourcing the daily room cleanup

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Reference no: EM131369043

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 $12.50. The? Duffy's Maid Service quote is $18.50 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 $61,000.

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).

If the number of room nights is less than the crossover? point, then _______ is the best option available to Tim.

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

Reference no: EM131369043

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