Bernhoff Corporation is considering outsourcing its legal work to an outside law firm. For the most recent year, the legal department incurred the following costs Chief Counsel Attorneys (4) Secretaries (3) Interns (2) Receptionist Total salaries Payroll tax Benefits Payroll cost Occupancy Travel Legal research 250,000 410,000 210,000 20,000 30,000 920,000 75,000 130,000 1,125,000 36,000 44,000 30,000 Occupancy cost is allocated by the company to all departments, at the rate of $20/sqft It consists of Depreciation (bldg) Tax and insurance (bldg) Maintenance Utilities 55% 8% 22% 15% Legal research refers to subscriptions to research services and publications If the department is eliminated, one attorney will be retained as a liaison with the law firm, at a total payroll cost of $120,000 She will occupy an office of 200 sq ft. Bernhoff currently has no plans for use of the vacated space Travel costs will be reduced by 90%, and research costs reduced by $25,000 The law firm will bill attorney costs at a rate of $420/hr, which will include support staff costs It is expected that the first year, the law firm will bill 2,200 hours, plus $60,000 of direct costs. Would Bernhoff's total expenses increase or decrease if the legal function were outsourced? Show your calculations. Assume that outsourcing would decrease expense. What other factors should Bernhoff consider before making the decision to outsource? b)