Suzy’s Temporary Employee (STE) business, located in a big city, can do an on-line criminal background check in-house for $1.64 per search with a fixed cost of $24,000. A third party on-line security firm offered to do a similar security search for $8.00 per person with an annual service contract with STE. If STE’s forecast is 3,000 searches next year, should STE continue to do the search in-house or accept the third party offer? What other criteria are important in making this decision?
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