IVUI ATISVICI Harter Manufacturing uses activity-based management to reduce or eliminate non-value-added activities from its value chain. The company's Accounting & Finance Department (A&F) has an annual budget of of $5 million. Of this amount, $2 million is assigned to the labor cost pool. There are 3 activities associated with the labor cost pool, and each is responsible for driving the following amounts of the pool's total cost: (1) 30% are driven by transaction activities; (2) 60% are driven by financial reporting activities; and (3) 10% are driven by budgeting activities. The A&F Department has an opportunity to outsource much of its information technology services at an annual cost of $200,000 per year. The only cost savings that would result relate to A&F's labor cost pool. Specifically, outsourcing would reduce transaction activities by 25%, financial reporting activities by 10%, and budgeting activities by 5%. The benefit of labor cost savings is expected to exceed the $200,000 annual outsourcing fee by X $ 50,000 Blank 1 Correct Answer Blank 1: 80,000