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Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in- house for $1.30 per search with

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Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in- house for $1.30 per search with a fixed cost of $32,000. A third-party online security firm offered to do a similar security search for $7.00 per person with an annual service contract with STE. If STE's forecast is 3,100 searches next year, should STE continue to do the search in-house or accept the third- party offer? Use the Excel template Break-Even to determine the best decision. Round your answer for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven quantity: 2781 searches Since the demand forecast of 3,100 searches is less breakeven quantity, STE than the should outsource the work. STE saves $ 6775 by outsourcing.

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