Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each year, Sunshine Motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness.For the current year, the company is considering outsourcing the survey

Each year, Sunshine Motos 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 $30,900.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 thecurrent costs. The head of bookkeeping for Sunshine has prepared the following summary of costs related to the survey in the prior year.

Mailing $17,000

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

REQUIRED: What is the incremental cost of going outside versus conducting the survey as in the past?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Investment Analysis

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

3rd edition

111910422X, 978-1119104544, 1119104548, 978-1119104223

More Books

Students also viewed these Finance questions

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago