Delila Waverly manages a fleet of 300 delivery trucks for Anderson Corporation. (Click the icon to view additional information.) Waverly performed the following analysis: (Click the icon to view the outsourcing decision analysis.) Read the requirements. i Data Table i More Info Retain In-House Outsource To FMS Difference $ $ Annual leasing fee for software Annual maintenance of trucks 8,500 154,000 8,500 154,000 Waverly must decide whether the company should outsource the fleet management function. If she outsources to Fleet Management Services (FMS), FMS will be responsible for maintenance and scheduling activities. This alternative would require Waverly to lay off her five employees. However, her own job would be secure, she would be Anderson's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $8,500 per year to lease. FMS offers to manage this fleet for an annual fee of $265,000. Total annual salaries of five 150,000 150,000 laid-off employees Fleet Management Service's 265,000 (265,000) Print Done annual fee Total differential cost of 312,500 $ 265,000 $ 47,500 outsourcing Print Done Requirement 1. Which alternative will maximize Anderson's short-term operating income? In order to maximize short-term operating income, Anderson Corporation should because the variable cost of outsourcing to FMS results in L of $ Requirement 2. What qualitative factors should Anderson consider before making a final decision? 7. O A. Will laying off five employees hurt the morale and productivity of other employees remaining with Anderson? OB. Will FMS quickly and satisfactorily handle calls and questions from Anderson's employees who are driving the trucks? O C. Will FMS provide the level of service Anderson needs? O D. Will FMS provide speedy maintenance and repairs? O E. All of the above OF. None of the above