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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 38
Outsourcing a Product
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. Should Sounds, Inc., outsource its customer service operation? What nonfinancial factors should be considered?
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. Should Sounds, Inc., outsource its customer service operation? What nonfinancial factors should be considered?
Explanation
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Decision to make or buy: Organization ta...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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