Description of this paper

Each year, Sunshine Motors surveys

Description

solution


Question

Each year, Sunshine Motors surveys 7,500 former and prospective customers regarding;satisfaction and brand awareness. For the current year, the company is considering outsourcing the;survey to Global Associates, who have offered to conduct the survey and summarize results for;$30,300 Craig Sunshine, the president of Sunshine Motors, believes that Global will do a higher-quality job than his company has been doing, but is unwilling to spend more than $10,000 above the;current costs. The head of bookkeeping for Sunshine has prepared the following summary of costs related to the survey in the prior year.;Mailing $16,000;Printing (done by Lester Print Shop) 4,500;Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (100 hours X $15) 1,500;Share of depreciation of computer and software used to track survey responses and summarized results 1,100;Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company 500;Total $23,600;Required;What is the incremental cost of going outside versus conducting the survey as in the past? Will Craig Sunshine accept the Global offer?

 

Paper#79744 | Written in 18-Jul-2015

Price : $22
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