Question: Dental Associates, Inc., is currently operating at less than capacity. The company thinks it could cut costs by outsourcing dental cleaning to an independent dental

Dental Associates, Inc., is currently operating at less than capacity. The company thinks it could cut costs by outsourcing dental cleaning to an independent dental hygienist for $50 per cleaning. Currently, a dental hygienist is employed for $30 an hour. A dental cleaning usually takes one hour to perform and consumes $10 of dental supplies, $8 of variable overhead, and $16 of fixed overhead. Should Dental Associates, Inc., continue to perform dental cleanings, or should it begin to outsource them?

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