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omework: Technology and Operations Management ent: Chapter 04 Homework: Technology and Operations Management Assignment Score: 0.00% Save Submit Assignment for Grading ns + Question 6 of 6 Check My Work (2 remaining) EB Spreadsheet Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in-house for $2.51 per search with a fixed cost of $25,000. A third-party online security firm offered to do a similar security search for $7.00 per person with an annual service contract with STE. If STE's forecast is 2,900 searches next year, should STE continue to do the search in-house or accept the third-party offer? Use the Excel template Break- Even to determine the best decision. Round your answer for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven quantity: searches -Select-than the breakeven quantity, STE -Select- outsource the work. STE -Select- Since the demand forecast of 2,900 searches is by outsourcing Check My Work (2 remaining) O Icon Key Paste BIU = = === Merge & Center v % , Conditional Format Formatting as Table B5 x fx 10000 F G H H Technology Choice Decision Quantity 11,000 Option A A Fixed cost Unit cost $200,000.00 $18.60 Option B Fixed cost Unit cost $100,000.00 $21.00 Total Cost Option Al Total Cost Option B Cost difference (Option A - Option B) Economical Decision A B C D E 1 Break-Even Analysis Cengage Learning. Not for commercial use. 2 Enter data only in yellow cells. 3 4 Profitability Analysis Outsourcing Decision 5 Quantity 10,000 Quantity 12,000 6 6 7 Cost Produce In-House - 8 Fixed cost $100,000.00 Fixed cost $250,000.00 9 Unit cost $12.00 Unit cost $20.00 10 11 Outsource 12 Revenue Fixed cost 13 Unit revenue $20.00 Unit cost $35.00 14 15 Total Cost $220,000.00 Total In-House Production Cost $490,000.00 16 Total Revenue $200,000.00 Total Outsourced Cost $420,000.00 17 Net Profit -$20,000.00 Cost difference (In-House - Outsourced) $70,000.00 18 Profit or Loss Loss Economical Decision Outsource 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 $404,600.00 $331,000.00 $73,600.00 Option B