Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 5 Days Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 01 Aug 2017 My Price 6.00

Cowboy Construction Company

(Make or Buy Decision) Cowboy Construction Company employs a full-time driver and pays the costs for a vehicle to deliver paperwork between each of its building sites. Select Couriers has offered to make these deliveries to the same standard of service for a fixed sum of $2,000 per month. Cowboy's annual costs are currently as follows:

Salary and costs of driver

$18,800

Depreciation of vehicle

2,500

Registration, insurance, & servicing

1,000

Fuel

3,000

Total

$25,300

If Cowboy uses Select Couriers, it will sell the vehicle for $2,000 and the driver's employment will be terminated without any severance payment.

  1. What are the relevant costs involved in this decision?
  2. Should Cowboy subcontract its delivery requirements to Select?
  3. What other considerations are there in making this decision?

Answers

Maurice Tutor
(5)
Status NEW Posted 01 Aug 2017 11:08 PM My Price 6.00

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