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Krista Moody manages a fleet of 325 delivery trucks for Poole Corporation. Moody performed the following analysis: (i) (Click the icon to viem additional information.)

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Krista Moody manages a fleet of 325 delivery trucks for Poole Corporation. Moody performed the following analysis: (i) (Click the icon to viem additional information.) (Click the icon to view the outsourcing decision analysis:) Which alternative will maximize short-term operating income? Which alternative will maximize Poole's short-term operating income? Data table In order to maximize shont term operating income, Poole Corporation should because the variable cost of outsourcing to FMS results in More info Moody 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 Moody to lay off her five employees. However, her own job would be secure: she would be Poole's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $10,000 per year to lease. FMS offers to manage this fleet for an annual fee of $260,000. Krista Moody manages a fleet of 325 delivery trucks for Poole Corporation. Moody performed the following analysis: (Click the icon to view additional information.) (Click the icon to view the outsourcing decision analysis.) Which alternative will maximize short-term operating income? Which alternative will maximize Poole's short-term operating income? In order to maximize short-term operating income, Poole Corporation should because the variable cost of outsourcing to FMS results in of $ Data table More info Moody 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 Moody to lay off her five employees. However, her own job would be secure; she would be Poole's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $10,000 per year to lease. FMS offers to manage this fleet for an annual fee of $260,000

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