Please solve E17-23

Iltl the motor-assembly space for $25,000 aht Costs and Benefits for Decision b. If it could 8ll per year, should it make or outsource factors should it consider in deciding whether to make or outsource the clectric Making this component? motors? Priya Rahavy, M.D., is a Make or w M.D., is a whose office Buildine bookkeeper. Dr. Rahavy, like many sma neral practitioner whose offices are located in the Lake Forest Professional s are 1 y has operated her practice with a nurse, a receptionist/secretary In the past, Dr. Rahay LO1 avy, her patients and their ies from her own office. The part-time bookkeeper, who works 15 hours per week. part time bookkeee Or. has billed purpose. e Physician's Service Center has offered to take over all of Dr. Rahavy's billings and annual fee of $24,000. If Dr. Rahavy accepts this offer, she will no longer need the kkeeper's wages and fringe benefits amount to $20 per hour, and the bookkeeper en weeks per year. With all the billings and collections done elsewhere, Dr: Rahavy will have onal hours available per week to see patients. She sees an average of four patients per hour employed exclusively for this North Avenue e additional thre at an average fee o than 50 weeks per year. Finally, if Dr. Rahavy signs on with the center, she will no longer need to rent a records storage facility for $200 per month. Required f $30 per wait several weeks for an appointment. She has resisted expanding her office hours or working more Conduct a relevant cost analysis to determine if it is profitable to outsourcethe bookkeeping. A. Sell or Process Further rert Allen Chemical Company processes raw material D into joint proxduces Eand F. Raw material D Pr Alen Chemical Company process mier 100 liters of D into 60 liters of E and 40 liters of F. Product O at on additional cost o