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BKF.com provides banks access to sophisticated financial information and analysis via the web, enabling them to instantly evaluate both personal and commercial loan applications. To

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BKF.com provides banks access to sophisticated financial information and analysis via the web, enabling them to instantly evaluate both personal and commercial loan applications. To better focus on its client services, BKF.com is considering outsourcing some of its internal functions. Its controller, Jenny to, suggests starting with the company's internal email system. She recently attended a conference and leamed that GTE and NBC outsource their email function to companies such as Google and Yahoo Loe began her analysis by identifying the total costs related to last month's in-house email operation, when there were 3,875 employee mailboxes Variable costs (varies with mailboxes) Email license $23,250 Virus protection license 4,650 Miscellaneous 7.750 Fixed Costs Computer hardware 31,000 Total costs 566,650 Lee analyzed the computer hardware costs, identifying its three components 1. $13,020 were allocated costs that will continue even if the email system is abandoned 2. 55,890 were non personnel direct costs that will be avoided if the email system is abandoned. 3. $12,090 were the monthly salaries for two equally paid interns who worked only on the email system, Mail.com, a leading provider of internet messaging outsourcing services, has offered to host BKF.com's email function for $11.20 per mailbox, F.com will still need to pay the virus protection license fee and one of the interns to maintain the virus protection software A company has agreed to pay BF.com $4,100 a month to use the computer storage space that will become available.com outsources its email function Finally, Lee estimates that 4,115 matboxes will be required per month next year REQUIRED By how much will KF.com's monthly profits change if they decide to outsource its emalfunction to Mail.com instead of managing the service internally? (Note: if the buy costs are less than the make costs, enter the difference as a positive number, if the make costs are less than the buy costs, enter the difference as a negative number, using the minus sign instead of parentheses

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