Sounds, Inc., is a company that produces sound systems for car stereos. It is considering outsourcing its customer service operation. It has a bid of $4 per call from Callers Service Company. Its current costs to service customers are estimated to be $3 per call, but it could use the idle space currently occupied by the customer service operation to earn an additional $24,000 per year. Sounds, Inc., currently receives about 1,500 customer calls per month.

a.Should Sounds, Inc., outsource its customer service operation?

• Yes
• No