MGT 455 WEEK 5 QUESTION 7 11
Tim Urban, owner/manager of Urban- Motor Court
in Key West, is considering outsourcing the daily room cleanup
for his motel to Duffy- Maid Service. Tim rents an average of
50 rooms for each of 365 nights (365 °ø 50 equals the total rooms
rented for the year). Tim- cost to clean a room is $12.50. The
Duffy- Maid Service quote is $18.50 per room plus a fixed cost
of $25,000 for sundry items such as uniforms with the motel-
name. Tim- annual fixed cost for space, equipment, and supplies
is $61,000. Which is the preferred process for Tim, and why? PX
USA 
India