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Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room. cleanup for his motel to Duffy's Maid Service. Tim

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Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room. cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights ( 365 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.50. The Duffy's Maid Service quote is $19.00 per room plus a fixed cost of $24.000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $60,000. Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $77,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $32,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. a) What is the crossover point in units (point of indifference) for the processes? The crossover point is units. (Round your response to the nearest whole number.)

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