Personnel Costs: 40 full-time equivalent (FTE) technical experts @ $40,000 per year (salary and benefits) 3 supervisors @ $70,000 per year (salary and benefits) Equipment Costs: 4 servers @ $2,000 per year 20 PCs @ $1,000 per year Variable Costs: $1.50 per request (office supplies, fax paper, etc.) New Delhi Proposal Fixed Cost: $1,500,000 per contract year (to cover administrative and IT costs) Charge: $0.50 per request Questions 1. Calculate the total cost of outsourcing the on-line help desk versus staying with the current solution. Which option is cheaper?