Franklin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided:

Allocations are based on the following:
Custodial: $ \quad $ Square feet

Administrative: $ \quad $ Number of employees

Required:
Franklin has been approached by Sparkle Cleaning to outsource the custodial service. Assuming all costs are variable, what is the relevant cost of the custodial department to compare with the Sparkle Cleaning bid?

Question

Franklin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided:
  
 Allocations are based on the following:
Custodial: $ \quad $ Square feet

Administrative: $ \quad $ Number of employees
 
Required:
Franklin has been approached by Sparkle Cleaning to outsource the custodial service. Assuming all costs are variable, what is the relevant cost of the custodial department to compare with the Sparkle Cleaning bid?

Quizplus · Accepted Answer

The Answer of Franklin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided:
  
 Allocations are based on the following:
Custodial: $ \quad $ Square feet

Administrative: $ \quad $ Number of employees
 
Required:
Franklin has been approached by Sparkle Cleaning to outsource the custodial service. Assuming all costs are variable, what is the relevant cost of the custodial department to compare with the Sparkle Cleaning bid?

Franklin Corporation Has Three Operating Departments (Fabricating, Assembly, and Finishing) \quad

Franklin Corporation Has Three Operating Departments (Fabricating, Assembly, and Finishing) $\quad$