Read the Pagoda.com case study from chapter 7 in the text (page 214 4th edition). While not given in the case, lets all assume that Pagoda.coms annual revenue is $10 million. This will give you some context when evaluating costs, potential savings and the $$ impact on the company. Answer questions:

1. Show your math to identify the fixed costs, variable costs and then calculate the total cost for the two options being discussed and identify which is least expensive and by how much. 2. List the other factors (in addition to cost ... you must include cost as one of the factors) that you would consider in your decision and then assign a weight to each of these factors and create a weighted point evaluation table. (see page 205 table 7.13, 4th edition and below).

3. Should Pagoda.com outsource its online helpdesk:

a. Y / N This is a simple yes or no answer. b. Why? This is the critical part of this question AND THIS ASSIGNMENT answering why and how well you defend or rationalize your decision.