1. Torrey Pines is studying whether to outsource its Human Resources (H/R) activities.Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization.Miscellaneous departmental overhead (e.g., supplies, copy charges, long distance) is expected to decrease by $30,000, and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments.If Torrey Pines can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing? A) $10,000. B) $35,000. C) $130,000. D) $155,000. E) None, as it would be cheaper to keep the department open. 2. Somerset Corporation is composed of five divisions, and each division is allocated a share of Somerset overhead to make divisional managers aware of the cost of running the corporate headquarters.The following information relates to the Metro Division: If the Metro Division is closed, 100% of the traceable fixed operating costs can be eliminated.What will be the impact on Somerset's overall profitability if the Meto Division is closed? A) Decrease by $200,000. B) Decrease by $500,000. C) Decrease by $2,100,000. D) Decrease by $2,400,000. E) None of the above. 3. India Corporation has $200,000 of joint processing costs and is studying whether to process J and K beyond the split-off point.Information about J and K follows. If India desires to maximize total company income, what should the firm do with regard to Products J and K? A) Entry A B) Entry B C) Entry C D) Entry D E) Entry E