Laura Tooley manages a fleet of 350 deliver 1. 2. Which alternative will maximize Smith's short-term operating income? What qualitative factors should Smith consider before making a final decision? analysis Requirement 1. Which alternative will maxi Print Done More info Outsource To FMS Retain In-House Difference $ 10,000 $ 10,000 Tooley 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 Tooley to lay off her five employees. However, her own job would be secure; she would be Smith'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 $265.000. 154,000 154,000 Annual leasing fee for software Annual maintenance of trucks Total annual salaries of five laid-off employees Fleet Management Service's annual fee 180,000 180,000 (265,000) 265,000 $ 344,000 $ 265,000 $ Total differential cost of outsourcing 79,000 Laura Tooley manages a fleet of 350 delivery trucks for Smith Corporation. i (Click the icon to view additional information.) Tooley performed the following analysis: B (Click the icon to view the outsourcing decision analysis.) Read the requirements. Requirement 1. Which alternative will maximize Smith's short-term operating income? In order to maximize short-term operating income, Smith Corporation should because the variable cost of outsourcing to FMS results in of