manages a fleet of delivery trucks for Corporation.

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Part $1$

performed the following$$ analysis:

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Read the requirementsLOADING....

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Part $1$

Requirement $1.$ Which alternative will maximize $\text{'}$s $$short$-$term operating$$ income?

In order to maximize short$-$term operating income, Anderson Corporation should

outsource to FMS

because the variable cost of outsourcing to FMS results in

a cost savings of

of

$$86,750$

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Part $2$

Requirement $2.$ What qualitative factors should consider before making a final$$ decision?

$$

A$.$

Will FMS provide speedy maintenance and$$ repairs?

B$.$

Will FMS provide the level of service $$needs$?$

C$.$

Will FMS quickly and satisfactorily handle calls and questions from $\text{'}$s employees who are driving the$$ trucks?

D$.$

Will laying off five employees hurt the morale and productivity of other employees remaining with $?$