Question: particular decision? What is the .. 5.25 Sox Engineering designs and constructs air condi- tioning and heating systems for hospitals and clinics. Currently, the company's

particular decision? What is the .. 5.25 Sox
particular decision? What is the .. 5.25 Sox Engineering designs and constructs air condi- tioning and heating systems for hospitals and clinics. Currently, the company's staff is overloaded with design work. There is a major design project due in 8 weeks. The penalty for completing the design late is $14,000 per week, since any delay will cause the facility to open later than anticipated and cost the client signifi- cant revenue. If the company uses its inside engineers to complete the design, it will have to pay them overtime for all work. Sox has estimated that it will cost $12,000 per week (wages and over- head), including late weeks, to have company engineers complete the design. Sox is also considering having an outside engineering firm do the design. A bid of $92,000 has been received for the completed design. Yet another option for completing the design is to conduct a joint design by having a third engineering company

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