Carleigh, Inc, is a pork processor. Its plants, located in the Midwest, produce several products from a common process: sirioin roasts, chops, spare ribs, and the residual. The roasts, chops, and spare ribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: The revenues from each product are as follows: sirloin roasts, $70,500; chops, $70,500;5pare ribs, $36,500; and residual, $8,200 Carleigh's management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for $52,200. This would bring the value of the residual down to $2,300. In addition, the organ meats would need to be packaged and then air freighted to Asia. Further processing cost per week is estimated to be $31,600 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct labor). Transportation cost would be $10,500 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, receiving, and internal shipping). The increase in resource spending for these activities is estimated to be $3,000 per week. Required: Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and run TNT's Pizza Restaurant. Tony is responsible for managing the day-to-day aspects, hiring workers, and overseeing the kitchen, building, and grounds. He is the chief cook and handles all purchasing. Ti is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed "L" for Little Joe. Tina brings L to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any free time and Tina feels she has too much to handle. Tony and Tina are considering outsourcing their bookkeeping and tax-filing needs to a local accountant. Typically, Tina spends 16 hours per monthf on bookkeeping and taxes. This increases to 38 hours in April. She uses a room off the kitchen as her office (a room that is sorely needed for additional food storage given the expansion). If Tina continues to do the financial work, the restaurant will need to make up for 80 percent of her time by hiring additional help at $13 per hour (hourly wage plus the restaurant's cost of Social Security, Medicare, and unemploymer insurance taxes). The local accountant will charge $23 per hour for bookkeeping services; he expects this service to average eleven hours per month. Taxes are filed quarterly for labor as well as state and local income taxes. These tax forms should cost about $74 per quarter. The annual income tax filing is estimated to cost $350, payable at the time 0 filing in Aprit, Required: 1. Given the information, determine the annual cost of hiring the outside accountant. x What is the cost of the substitute labor if Tina continues to do the financial work? Round your answer to the nearest cent
