Make $or$ Buy

Priya Rahavy, $M.D.,is$ a general practitioner whose offices are located $in$ the Lake Forest Professional Building. $In$ the past, $Dr.$ Rahavy has operated her practice with a nurse, a receptionis$\frac{t}{secretary,\text{a}\text{n}\text{d}\text{a}\text{p}\text{a}\text{r}\text{t}-\text{t}\text{i}\text{m}\text{e}\text{b}\text{o}\text{o}\text{k}\text{k}\text{e}\text{e}\text{p}\text{e}\text{r}\text{.}Dr.\text{R}\text{a}\text{h}\text{a}\text{v}\text{y}\text{,}\text{l}\text{i}\text{k}\text{e}\text{m}\text{a}\text{n}\text{y}\text{s}\text{m}\text{a}\text{l}\text{l}-\text{t}\text{o}\text{w}\text{n}\text{p}\text{h}\text{y}\text{s}\text{i}\text{c}\text{i}\text{a}\text{n}\text{s}\text{,}\text{h}\text{a}\text{s}\text{b}\text{i}\text{l}\text{l}\text{e}\text{d}\text{h}\text{e}\text{r}\text{p}\text{a}\text{t}\text{i}\text{e}\text{n}\text{t}\text{s}\text{a}\text{n}\text{d}\text{t}\text{h}\text{e}\text{i}\text{r}\text{i}\text{n}\text{s}\text{u}\text{r}\text{a}\text{n}\text{c}\text{e}\text{c}\text{o}\text{m}\text{p}\text{a}\text{n}\text{i}\text{e}\text{s}\text{f}\text{r}\text{o}\text{m}\text{h}\text{e}\text{r}\text{o}\text{w}\text{n}\text{o}\text{f}\text{f}\text{i}\text{c}\text{e}\text{.}\text{T}\text{h}\text{e}\text{p}\text{a}\text{r}\text{t}-\text{t}\text{i}\text{m}\text{e}\text{b}\text{o}\text{o}\text{k}\text{k}\text{e}\text{e}\text{p}\text{e}\text{r}\text{,}\text{w}\text{h}\text{o}\text{w}\text{o}\text{r}\text{k}\text{s}15\text{h}\text{o}\text{u}\text{r}\text{s}\text{p}\text{e}\text{r}\text{w}\text{e}\text{e}\text{k}\text{,}is\text{e}\text{m}\text{p}\text{l}\text{o}\text{y}\text{e}\text{d}\text{e}\text{x}\text{c}\text{l}\text{u}\text{s}\text{i}\text{v}\text{e}\text{l}\text{y}\text{f}\text{o}\text{r}\text{t}\text{h}\text{i}\text{s}\text{p}\text{u}\text{r}\text{p}\text{o}\text{s}\text{e}\text{.}}$

North Avenue Physician's Service Center has offered $to$ take over all $ofDr.$ Rahavy's billings and collections for $an$ annual fee $of$ $$24,000.IfDr.$ Rahavy accepts this offer, she will $no$ longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount $to$ $$20$ per hour, and the bookkeeper works $50$ weeks per year. With all the billings and collections done elsewhere, $Dr.$ Rahavy will have three additional hours available per week $to$ see patients. She sees $an$ average $of$ four patients per hour $atan$ average fee $of$ $$30$ per visit. $Dr.$ Rahavy's practice $is$ expanding, and new patients often have $to$ wait several weeks for $an$ appointment. She has resisted expanding her office hours $or$ working more than $50$ weeks per year. Finally, $ifDr.$ Rahavy signs $on$ with the center, she will $no$ longer need $to$ rent a records storage facility for $$200$ per month.

Conduct a relevant cost analysis $to$ determine $ifitis$ profitable $to$ outsource the bookkeeping.

Calculate the net advantage $(disadvantage)of$ outsourcing the bookkeeping.

Use a negative sign with your answer $to$ indicate a net disadvantage, $if$ applicable.

$Answer $1$