Question
A magazine is facing dwindling subscriptions and is thinking about closing down its team responsible for restaurant reviews to cut costs. It currently writes between
A magazine is facing dwindling subscriptions and is thinking about closing down its team responsible for restaurant reviews to cut costs. It currently writes between 900 to 1,100 reviews a year. The team consists of one senior journalist with a permanent employment at the magazine, who would likely be reassigned within the company after the closure. Her yearly salary cost is 60,000. Moreover, the team employs one part time journalists on hourly contract that on average is costing the magazine 40,000 a year. The team's office space is allocated a facility cost of 12,000 a year and the team spend on average about 50,000 on travel and restaurant expenses a year. Instead of having the team, the magazine would then buy restaurant reviews from a third-party provider at a cost of 140 per review. How much will the magazine save per year if it closes its team?
A.Costs decrease between 9,000 to 11,000 per year
B.Costs neither increase nor decrease
C.Costs decrease between 19,800 to 24,200 per year
D.Costs increase between 45,000 to 55,000 per year
E.Costs increase between 81,000 to 99,000 per year
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