Each year, Macaron Motors surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to RBG Associates, which has offered to conduct the survey and summarize results for $34,655. Craig Knight, the president of Macaron Motors, believes that RBG will be a higher-quality job than his company has been doing but is unwilling to spend more than $10,000 above current costs. The head of bookkeeping for Macaron has prepared the following summary of costs related to the survey in the prior year:

Exercise 7-5 Each year, Macaron Motors surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to RBG Associates, which has offered to conduct the survey and summarize results for $34,655. Craig Knight, the president of Macaron Motors, believes that RBG will do a higher-quality job than his company has been doing but is unwilling to spend more than $10,000 above current costs. The head of bookkeeping for Macaron has prepared the following summary of costs related to the survey in the prior year: Mailing $17,800 Printing (done by Lester Print Shop) 5,500 Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (130 hours x $13) 1,590 Share of depreciation of computer and soware used to track survey responses and summarize results 1,200 Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company 640 Total $26,830 What is the incremental cost or savings of going outside vs. conducting the survey as in the past? The incremental of going outside 3 Will Craig Knight accept the RBG offer? Craig Knight accept the RBG offer