Question

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 X 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 sundy items such as uniforms with motel's name. Tim's annual fixed cost ofor space, equipment, and supplies is $61,000. Which is the preferred process for Tim, and Why?

Answer 1

outsourcing