Explain the preferred process for space and equipment, Operation Management

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Susan is considering outsourcing the daily room clean-up for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms rented for each of 365 nights (365*50=total rooms rented for the year). Susan's cost to clean a room is 12.50. Duffy's quote is 18.50 per room plus a fixed cost of 25000 for sundry items such as uniforms with the motel's name. Susan's annual fixed cost for space, equipment, and supplies is 61000. Which is the preferred process for Susan, and why?


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