Tim urban, owner/manager of urban's motor court in key west, is considering outsourcing the daily room cleanup for his motel to duffy's maid service. tim rents an average of 50 rooms for each of 365 nights (365 × 50 = the total rooms rented for the year). tim's cost to clean a room is $12.50. the duffy's maid service quote is $18.00 per room + a fixed cost of $24,000 for sundry items such as uniforms with the motel's name. tim's annual fixed cost for space, equipment, and supplies is $61,000.

Sunset foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. however, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. with the launch of its new line of breakfast foods coming up, how can sunset improve its ability to collaborate without sacrificing the benefits of its current structure