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

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22-07-2022
Business

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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

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Munali Munali · Answer 1 · 2022-07-25T19:46:46+02:00

There are 2 options available to the firm 1 is to hire the team for serviced or 2 is to outsource the service. Both the options are analyzed in detail as follows:

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 (Team)

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

Outsource

$17 * 1500 = $25,500

Lowest is $25,500 in outsourcing

Conclusion

It is better to outsource the service of air conditioner as compared to have a team for this service.

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

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