Question

a firm installs 1500 air conditioners which need to be serviced every six months. the firm can hire a team from its logistics department at a fixed cost of $6,000. each unit will be serviced by the team at $15.00. the firm can also outsource this at a cost of $17.00 inclusive of all charges

Answer 1

There are 2 options available to the firm 1 is to hire the staff for service or 2 is to outsource the service.

What is outsourcing?

Outsourcing is the act of obtaining services from external provider instead of having own management. A company can outsource its functions or departments.

Inhouse

$6000 + ($15 * 1500) = $28,500

Outsource

$17 * 1500 = $25,500

Lowest is $25,500 in outsourcing

It is better to outsource the service of air conditioner

Learn more about outsourcing at brainly.com/question/27125576

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