1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivolga24 [154]
3 years ago
11

Sounds, Inc., is a company that produces sound systems for car stereos. It is considering outsourcing its customer service opera

tion. 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.
a. Should Sounds, Inc., outsource its customer service operation?
b. What nonfinancial factors should be considered?
Business
1 answer:
KiRa [710]3 years ago
4 0

Answer:

a)

Sounds Inc should outsource the call center service because it is cheaper and will help to save cost worth (78,000- 72000)= $6,000

b)

Financial factors. See notes below

Explanation:

T<em>o determine whether or not to  outsource the function, we will compare the cost of the internal department to the cost of the external supplier. And go for the option wit the lower cost</em>

<em>Internal cost</em>

Running cost (3×1,500×12)                  54000

Opportunity cost                               =<u> 24,000</u>

Total cost                                              <u>78000 </u>

<em>External cost</em> (4×  1500×12)                  72000

Sounds Inc should outsource the call center service because it is cheaper and will help to save cost worth (78,000- 72000)= $6,000

Financial factors

<em>Service Quality</em>. Sound Inc need to be sure that the quality of service to be provided wont be undermined.

<em>Poaching </em>: Also, another risk area is the possibility of the external provider converting sounds customers to competitor

Data Privacy and protection: is there a guarantee that the contractor would not divulge or abuse the privileged information of Client's customers

       

You might be interested in
The balance between supply and demand is called
OLEGan [10]

Answer: O EQUILIBRIUM

HOPE THIS HELPS

CAN YOU PLEASE HELP ME TOO

6 0
3 years ago
In corporations, it is easy to transfer ownership by selling stock.<br> Select one: true or false
Serhud [2]

Answer:

the question is false

Explanation:

you can't sell stock for ownership

8 0
2 years ago
Department S had no work in process at the beginning of the period. It added 12,200 units of direct materials during the period
galben [10]

Answer:

Cost of completed units = $158,240

Explanation:

<em>Cost of completed units = Cost per equivalent unit × no of units</em>

<em>Equivalent unit = Degree of completion × units of work</em>

<em>Equivalent units of material</em>

( 9200× 100%)   + (3000×100%) = 12,200 unit

Cost per equivalent unit of material = $97,600/12,200 units= $8

<em>Equivalent units of labour and overhead</em>

(9200× 100%) + (3000× 25%) = 750

Cost per equivalent unit of labour and overhead

=( 73,630+17910)/9950 =$9.2

Cost of completed units

= $(9.2+8)× 9,200 = 158,240

Cost of completed units = $158,240

5 0
3 years ago
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.5 percent and a standard devi
mario62 [17]

Answer: Step 1) Find share of market in the Portfolio

(11.5-3.5)x+3.5=6.5

8x=3

x=3/8

x=0.375

=37.5%

SD of market portfolio= 0.375x+0=9.5

x=9.5/0.375

=25.33%

correl = cov / (std 1 * std2)

0.4=COV/0.2533*0.545

COV= 0.2533*0.545*0.4=0.05

cov of 2 assets = b1 * b2 * variance of market

0.05=B1*1*0.2533^2

B of security=0.0032

Capm Model

3.5+0.0032(11.5-3.5)=3.5256% expected return

Explanation:

Step 1) Find the share of market in the portfolio in order to find market SD

Step 2)  Find Covariance betweens security and market by using both SDS and correlation

Step 3) Find Beta of Security using Co variance

Step 4) Use the Beta in CAPM model in order to find expected return

4 0
3 years ago
First,label the following scenarios as to whether they would create a producer or consumer surplus. Then, after you have labeled
Iteru [2.4K]
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount. 
(Alice's consumer surplus, $5)

<span>Jeff finds some steaks for $16 for which he would have been willing to pay $20. The butcher notices the meat is near the expiration date and gives him an extra 75% off. </span>
(Jeff's consumer surplus, $16)

<span>Nicole has in her possession a hockey puck from the 2010 Winter Olympic Games and sells it on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. </span>
(Nicole's producer surplus, $0)

<span>Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer and is willing to sell for anything over $100. She is able to sell it for $125. </span>
(Claire's producer surplus, $25)


<span>Roy is willing to pay $2.50 for a sports drink. He notices the price is $2.79 and chooses not to purchase a sports drink. (Roy's consumer surplus, $0)</span>
8 0
3 years ago
Other questions:
  • Willow Creek Nursery, with an authorization of 72,000 shares of preferred stock and 210,000 shares of common stock, completed se
    13·1 answer
  • The following information applies to Caroline, who is single, for 2017:
    6·1 answer
  • A _______ is an organization that is NOT presently in a task environment but has the resources to enter if it so chooses. potent
    8·1 answer
  • Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
    11·1 answer
  • What features of the 100 Yen Sushi House service delivery system differentiate it from the competition, and what competitive adv
    9·1 answer
  • A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessne
    11·1 answer
  • Which of these statements are Red Flags that may signal Colleague
    10·1 answer
  • 100 POINTS** How does the book " Sounder " Represent Christianity?
    8·1 answer
  • The ____ is a private corporation owned by a consortium of commercial banks and industrial companies, but the ____ is a self-sus
    6·1 answer
  • Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insis
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!