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woom nights is less than the crossover point, then en room nights that Tim expects to rent (18.250), the best option is is the best option available to Tim

woom nights is less than the crossover point, then en room nights that Tim expects to rent (18.250), the best option is is the best option available to Tim

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 (365x 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 $61,000. 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) if the number of room nights is less than the crossover point, then is the best option available to Tim Based on the given room nights that Tim expects to rent (18,250), the best option is
Transcribed Image Text: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 (365x 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 $61,000. 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) if the number of room nights is less than the crossover point, then is the best option available to Tim Based on the given room nights that Tim expects to rent (18,250), the best option is
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