An online retailer must decide if it should insource or

An online retailer must decide if it should insource or outsource its website maintenance. The company estimates that 4,000 hours per year will be needed to maintain its website. To insource maintenance requires $25,000 in fixed costs per year and $27/hour in variable costs. Quotes from suppliers show that website maintenance can be outsourced for $35 per hour. Does the cost analysis support insourcing or outsourcing website maintenance?

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Management Leadership Tutors
Ask questions directly from Qualified Online Management Leadership Tutors .
Best for online homework assistance.