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Canyon Trails is studying whether to outsource its Human Resources ( H / R ) activities. Salaried professionals who earn $ 4 1 0 ,

Canyon Trails is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $410,000 would be terminated; in contrast, administrative assistants who earn $131,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $32,000, and $21,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Canyon Trails can secure needed H/R services locally for $430,000, how much would the company benefit by outsourcing?
Multiple Choice
Nothing, as it would be cheaper to keep the department open.
$43,000.
$174,000.
$12,000.
$143,000.
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