Outsources room cleanup for motel to duffy maid service


Assignment:

Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 A- 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is 18.00 per room plus a fixed cost of 24,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $61,000.

Based on the given information related to costs for each of the options, the crossover point for Tim = ______room nights (round your response to the nearest whole number).

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Operation Management: Outsources room cleanup for motel to duffy maid service
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