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Myer Food in Bowling Green, Kentucky, manufactures and markets snack foods. Mila Giles manages the company's fleet of 220 delivery trucks. Giles has been charged

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Myer Food in Bowling Green, Kentucky, manufactures and markets snack foods. Mila Giles manages the company's fleet of 220 delivery trucks. Giles has been charged with "reengineering" the fleet-management function. She has an important decision to make. i (Click the icon to view the decision Giles has to make.) Assume that Giles's records show the following data concerning Myer Food's fleet: (Click the icon to view the data.) Suppose that Fleet Management Services offers to manage Myer Food's fleet for an annual fee of $280,000. Which alternative will maximize Myer Food's short-term operating income?Complete the following analysis. (Enter a "0" for any zero amounts. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing decision.) Myer Food Outsourcing Decision Analysis Retain Outsource In-House to FMS Difference Total cost of fleetX More info . Should she continue to manage the fleet in-house with the five employees reporting to her? To do so, she will have to acquire new fleet-management software to streamline Myer Food's fleet-management process. . Should she outsource the fleet-management function to Fleet Management Services, a company that specializes in managing fleets of trucks for other companies? Fleet Management Services would take over the maintenance, repair, and scheduling of Myer Food's fleet (but Myer Food would retain ownership). This alternative would require Giles to lay off her five employees. However, her own job would be secure, as she would be Myer Food's liaison with Fleet Management Services.Data table Book value of Myer Food's trucks, with an estimated five-year life . . . . $ 3,800,000 Annual leasing fee for new fleet-management software . . . .. $ 9,000 Annual maintenance of trucks . . .. $ 166,000 Fleet Supervisor Giles's annual salary. . . . $ 65,000 Total annual salaries of Myer Food's five other fleet-management employees . . . .. $ 160,000

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