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Majes courses Help Lapout Course Contents LON-CAPA PROBLEMS MODULE ... PROBLEM # 4 [MAKE OR BUY DECISION Evaluare BKF.com provides banks access to sophisticated financial
Majes courses Help Lapout Course Contents LON-CAPA PROBLEMS MODULE ... PROBLEM # 4 [MAKE OR BUY DECISION Evaluare BKF.com provides banks access to sophisticated financial Information and analysis via the web, enabling them to instantly evaluate both personal and commercial loan applications. To better focus on its client services, BKF.com is considering outsourcing some of its internal functions. It controler Jenny Lee, suggests starting with the company's internal email system. She recently attended a conference and learned that GTE and NBC outsource their email function to companies such as Google and Yahoo. Loe began her analysis by identifying the total costs related to last month's in-house email operation, when there were 3,690 employee ma boxes: Nos Variable Costs (varies with males) Email license $15,498 Virus protection license Miscellaneous 8,856 Fixed Costs Computer hardware 35,424 Total costs $64,205 Lee analyzed the computer hardware costs, identifying its three components 1. $14,878 were allocated costs that will continue even if the email system is abandoned 2. 56,376 were non-personnel direct costs that will be avoided if the email system is abandoned 3. $14,170 were the monthly salaries for two equally paid interns who worked only on the email system Mail.com, a leading provider of Internet messaging outsourcing services, has offered to host Bacon's email function for $11.90 per mailbox. Br.com will still need to pay the virus protection license fee and one of the interns to maintain the virus protection software A company has agreed to pay BK.com $3,400 a month to use the computer storage space that will become avatable BF.com outsources its email function Finally, Lee estimates that 4,135 mailboxes will be required per month next year. REQUIRED [6 tries) By how much will ki.com's monthly profits change if they decide to outsource its email function to Mail.com instead of managing the service internaly? (Note: if the buy costs are less than the male costs, enter the difference as a positive number, the make costs are less than the buy costs, enter the difference as a negative number using the minus sign instead of parentheses)
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