Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. each year, sunshine motos surveys 7,500 former and

Each year, Sunshine Motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness....

70.2K

Verified Solution

Question

Finance

Each year, Sunshine Motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to Global Associates, who have offered to conduct the survey and summarize results for $30,000.Craig Sunshine, the president of Sunshine Motors, believes that Global will do a higher-quality job than his company has been doing, but is unwilling to spend more than $10,000 above the current costs. The head of bookkeeping for Sunshine has prepared the following summary of costs related to the survey in the prior year. Mailing $16,800 Printing (done by Lester Print Shop) $4,500 Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (100 hours X $15) $1,500 Share of depreciation of computer and software used to track survey responses and summarized results. $1,100 Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company. $500 REQUIRED: What is the incremental cost of going outside versus conducting the survey as in the past?

Round to two decimal places.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students