Part 1 of 2 Krista Bailey manages a fleet of 300 delivery trucks for Daniels Corporation (Click the icon to view additional information.) Bailey per (Click Read the re Requirement 1. Which alterative will maximize Daniels's short-term operating income? In order to maximize short-term operating income, Daniels Corporation should because the variable cost of outsourcing to FMS results in lof Krista Bailey manages a fleet of 300 delivery trucks for Daniels Corporation (Click the icon to view additional information) Bailey performed the following analy (Click the icon to viow the outsou Read the requirements. Requirement 1. Which alternative will maximize Daniels's short-term operating income? In order to maximize short-term operating income, Daniels Corporation should because the variable cost of outsourcing to FMS results in of outsource to FMS continue to manage the fleet in-house apter 25 Homework Question 7, S25-7 (s Part 1 of 2 Krista Bailey manages a fleet of 300 delivery trucks for Daniels Corporation. (Click the icon to view additional information.) Requirement 1. Which alternative will maximize Daniels's short-term operating income? In order to maximize short-term operating income, Daniels Corporation should because the variable cost of outsourcing to FMS results in of additional costs of a cost savings of OD (Click the icon to view the outsourcing decision Read the requirements. - Data table aniels's shor Daniels Con Outsource To FMS . Difference results in a Annual leasing fee for software Annual maintenance of trucks Total annual salaries of five laid-off employees Retain In-House $ 10,000 151,000 10,000 151,000 170,000 $ 350,000 Fleet Management Service's annual fee Total differential cost of outsourcing 170,000 (350,000) (19,000) $ 331,000 $ 350,000 $ Print Done cs example Get more help els Corporation. Bailey performed the following analysis: (Click the icon to view the outsourcing decisi Read the requirements. X More info short-term o Corporation Bailey 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 Bailey to lay off her five employees. However, her own job would be secure; she would be Daniels'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 $350,000. Print Done
