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Additionalformationovidbothdinanatirector . If CharlesSmithretiredtwo yearsearlythe companywould haveto payanextraf20000 lump suminto the pensionscheme . The building housingthe IT departmentvason a threeyearleaseandthe companywas committedto an annualrentalof $10
Additionalformationovidbothdinanatirector . If CharlesSmithretiredtwo yearsearlythe companywould haveto payanextraf20000 lump suminto the pensionscheme . The building housingthe IT departmentvason a threeyearleaseandthe companywas committedto an annualrentalof $10 000peryearfor thatperiod This building could be subletif IT wereoutsourcegenerating: 4 000in the first year $8 000in the secondand E10 000 in the final yearof the lease . Currentforecastsof consumablein the IT departmentref5000 6000andf7000over the nextthreeyears Theresalevalueof the IT equipmentoughtlastyearis $30 000. . Annualoverheadsor the IT departmentref27 000peryear 60% of the overheadaries with staffnumbersthe remaining40% is a shareof centraloverheadcharges Required You have been appointed as a consultant to prepare a report analysing the outsourcing proposalincluding boththe financial andnon-financialeffects andgive your recommendations Your report should include the following: 1. anincrementacostinganalysis 2. theeffectson reportedprofits; 3. discussionof otherfactorsthatneedto betakeninto accounteforea decisionis made 4. recommendations/ith reasons 5. an executive summary
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