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). Part 3 If the number of room nights is less than the crossover point, then is the best option available to Tim.
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). Part 3 If the number of room nights is less than the crossover point, then is the best option available to Tim.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 × 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 $18.00 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.
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 =
room nights (round your response to the nearest whole
number).
Part 3
If the number of room nights is less than the crossover point, then
is the best option available to Tim.
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