Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in-house for $3.38 per search with a fixed cost of $28,000. A third-party online security firm offered to do a similar security search for $9.50 per person with an annual service contract with STE. If STE's forecast is 2,700 searches next year, should STE continue to do the search in-house or accept the third-party offer? Use the Excel template Break-Even to determine the best decision. Round your answer for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven qu
Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in-house for $3.38 per search with a fixed cost of $28,000. A third-party online security firm offered to do a similar security search for $9.50 per person with an annual service contract with STE. If STE's
Breakeven quantity: searches
Since the demand forecast of 2,700 searches is than the breakeven quantity, STE outsource the work. STE $ by outsourcing.
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