Business, 21.02.2020 04:28 patrick171888
Each year, Beca Motors surveys 8,100 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to RBG Associates, which has offered to conduct the survey and summarize results for $33,652. Craig Knight, the president of Beca Motors, believes that RBG will do a higher-quality job than his company has been doing but is unwilling to spend more than $10,000 above current costs. The head of bookkeeping for Beca has prepared the following summary of costs related to the survey in the prior year:Mailing $17,500Printing (done by Lester Print Shop) 6,000Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (130 hours × $16) 2,080Share of depreciation of computer and software used to track survey responses and summarize results 1,200Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company 600Total $27,380What is the incremental cost of going outside vs. conducting the survey as in the past? Will Craig Knight accept the RBG offer?
Answers: 3
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