Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup forhis motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the totalrooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $19.00 per roomplus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed costfor space, equipment, and supplies is $61,000.Based on the given information related to costs for each of the options, the crossover point for Tim =(round your response to the nearest whole number).If the number of room nights is less than the crossover point, thenTim.Based on the given room nights that Tim expects to rent (18,250), the best option isroom nightsis the best option available to

Crossover Point CalculationSolving for the number of rooms (let's call it R):13R + 61,000 = 19R +…

Answered: Tim Urban, owner/manager of Urban's…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 18P

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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 $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $60,000. 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) 4
Tim Urban, owner/manager of Urban's Motor Courtin Key West, is considering outsourcing the daily room cleanupfor his motel to Duffy 's Maid Service. Tim rents an average of50 rooms for each of 365 nights (365 X 50 equals the total roomsrented for the year). Tim's cost to clean a room is $12.50. TheDuffy's Ma id Service quote is $18.50 per room plus a fixed costof $25,000 for sundry items such as uniforms with the motel'sname. Tim's annual fixed cost for space, equipment, and suppliesis $6 1,000. Which is the preferred process for Tim, and why?
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 $13.50. The Duffy's Maid Service quote is $19.00 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. Based on the given information related to costs for each of the options the crossover point for Tim = room nights ( round your answer to the nearest whole number). If the number of room nights is less than the crossover point the (not outsourcing, outsourcing) is the best option available to Tim. Based on the given room nights that Tim expects to rent (18,250) the best option is (outsourcing, not outsourcing).
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 $26,000for 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.
K 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 $13.00. The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Based on the given information related to costs for each of the options, the crossover point for Tim = (round your response to the nearest whole number). room nights elp
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Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete with thepopular word processing soft ware currently available. Annualfi xed costs of producing the item are estimated at $150,000, andthe variable cost is $10 per unit. Th e current selling price of theitem is $35 per unit, and the annual sales volume is estimated at50,000 units.(a) Easy-Tech is considering adding new equipment thatwould improve soft ware quality. Th e negative aspect ofthis new equipment would be an increase in both fi xedand variable costs. Annual fi xed costs would increase by$50,000 and variable costs by $3. However, marketingexpects the better-quality product to increase demandto 70,000 units. Should Easy-Tech purchase this newequipment and keep the price of their product the same?Explain your reasoning.(b) Another option being considered by Easy-Tech is theincrease in the selling price to $40 per unit to off set theadditional equipment costs. However, this increase…
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