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accounting 2 discussion week 4

accounting 2 discussion week 4 - Accounting II Week 4...

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Accounting II Week 4 Discussion 1. Compute the total cost per mailbox per month of BKFin.com’s current e-mail function. To figure out what the total cost of each mailbox is we need to first divide the fixed costs by 2,300 (total number of mailboxes) Hardware: $41 - Salary: $7 Then add all costs (fixed and variable) (41+7+7+1+8) totaling $64 per mailbox per month. 2. Should CEO Wise accept Mail.com’s offer? The Mail.com option will cost $54.50 per month per mailbox which is more cost effective than the current system costing $64 which we know from question 1. With mail.com offering $9 per box we need to add the $1 for virus protection as well as the $41 hardware costs and $3.50 to come up with the $54.50 per box per month. Clearly the offer is one to take a look at. On the surface the company stands to save a significant amount of money: ($9.50 X 2300=$21,850 PER MONTH SAVINGS) I would adviseBKFin.com to accept the offer. 3. Should CEO Wise outsource these extra services to Mail.com?
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