Question
Sounds, Inc., is a company that produces sound systems jor car stereos. It is considering outsourcing its customer service operation. It has a bid
Sounds, Inc., is a company that produces sound systems jor car stereos. It is considering outsourcing its customer service operation. It has a bid of $1.50 per call from Callers Service Company. Its current costs to service customers are estimated to be $6,000 in FC per month. If outsourced, Sounds Inc. could use the ic space currently occupied by the customer service operation to earn an additional $6,000 per year. Sounds, Inc., currently rece about 300 customer calls per month. The company's fixed costs remain the same whether the service center is maintained a insource or outsource Should Sounds, Inc., outsource its customer service operation? What nonfinancial factors should be considered? Inflows and (outflows) Net inflows/(ouflows) Should the call center be outsourced? Insourced Outsourced
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