Question: Sounds Inc is a company that produces sound systems for
Sounds, Inc., is a company that produces sound systems for car stereos. It is considering outsourcing its customer service operation. It has a bid of $2.50 per call from Callers Service Company. Its current costs to service customers are estimated to be $2.00 per call, but it could use the idle space currently occupied by the customer service operation to earn an additional $3,500 per year. Sounds, Inc., currently receives about 200 customer calls per month. Should Sounds, Inc., out-source its customer service operation? What nonfinancial factors should be considered?
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