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fuat fuat
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6 years ago
A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The fixed cost of the laboratory located in the hospital is 800,000, and the weighted average variable cost per test if performed in-house is 28.75 . A third-party lab located one city block from the hospital will perform the same tests and distribute the results electronically to the hospital at a price of 32.00 . If the annual volume last year was 250,000 tests, the hospital should:
 a. outsource these lab tests to this third-party lab.
  b. offshore these lab tests to this third-party lab.
  c. perform these lab tests in-house at the hospital.
  d. reduce fixed costs 200,000 and then outsource.
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drawnbluddrawnblud
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6 years ago
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fuat Author
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#2
6 years ago
Appreciate your effort, thank you!
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