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Mealy Food in Atilanta, Georgia, manufactures and markets snack foods. Rita Lee manages the company's fleet of 200 delivery trucks. Lee has been charged with
Mealy Food in Atilanta, Georgia, manufactures and markets snack foods. Rita Lee manages the company's fleet of 200 delivery trucks. Lee has been charged with "reengineering the fleet-management function. She has an important decision to make. (Click the icon to view the decision Lee has to make.) Assume that Lee's records show the following data concerning Mealy Food's fleet: EEB (Click the icon to view the data.) Suppose that Fleet Management Services offers to manage Mealy Food's fleet for an annual fee of $270,000. Which alternative will maximize Mealy Food's short-term operating income? Complete the following analysis. (Enter a "O for any zero amounts. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing decision.) Mealy Food Outsourcing Decision Analysis Retain In-Houseto FMS Difference Total cost of fleet Operating income for Mealy Food will by s if it outsources the fleet-management function
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