Drop down options:

Requirement 1:

1. continue to manage fleet in-house or outsource to FMS

2. a cost savings of or additional cost of

i Data Table Retain In-House Outsource To FMS Difference $ 8,500 149,000 8,500 149,000 Annual leasing fee for software Annual maintenance of trucks Total annual salaries of five laid-off employees Fleet Management Service's 160.000 160,000 285,000 (285,000) annual fee Total differential cost of 317,500 $ 285,000 $ 32,500 outsourcing Laura Bailey manages a fleet of 350 delivery trucks for Anderson Corporation (Click the icon to view additional information.) Bailey performed the following analysis: Click the icon to view the outsourcing decision analysis.) Read the requirements. 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 of $ Requirement 2. What qualitative factors should Anderson consider before making a final decision? O A. Will laying off five employees hurt the morale and productivity of other employees remaining with Anderson? OB. Will FMS provide the level of service Anderson needs? O C. Will FMS provide speedy maintenance and repairs? OD. Will FMS quickly and satisfactorily handle calls and questions from Anderson's employees who are driving the trucks? O E. All of the above OF. None of the above