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Reliable is charging $3000 for the plumbing activity. Bonanza has three options: Keep Reliable Plumbers Cancel the contract with Reliable Plumbers and hire another contractor,
Reliable is charging $3000 for the plumbing activity. Bonanza has three options: Keep Reliable Plumbers Cancel the contract with Reliable Plumbers and hire another contractor, Local Plumbers Inc. Local Plumbers will take two weeks to complete activity J and will charge $7000. Bonanza can train its own employees who are currently performing activity E to do the work. This involves a two week training period as soon as activity E is done. It is expected it will take them three weeks to perform activity I. The cost of the training is $800 per week and the cost of them doing activity J is $1000 per week. Which alternative do you recommend? Explain
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