Question: please help solve A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The foxed cost
please help solve
A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The foxed cost of the laboratory located in the hospital is $300,000 and the weighted average variable cost per test if performed in-house is $28.25. A third-party is located one city block from the hospital will perform the same tests and distribute the results electronically to the hospital at a price of $35.25. If the annual volume last year was 270,000 tests, should the hospital outsource or make- In-house? Round your answers to the nearest dollar Total cost if done in-house: $ Total cost if outsourced: $ So, the company saves $ if it Select Oy
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
