Pizza Planet employs a full-time driver and pays the costs for a delivery vehicle to deliver pizza to its take-out customers. Rapid Delivery has offered to make these deliveries with the same service standard for a fixed sum of $2,650 per month. Pizza Planets annual costs are as follows:

Salary and costs of driver $23,350

Registration, insurance & service - automobile 3,500

Fuel 2,750

Depreciation automobile 2,900

Total annual cost $32,500

If Pizza Garden outsources delivery to Rapid Delivery, it will terminate the drivers employment without any severance payments.

a) Should Pizza Garden subcontract its delivery service to Rapid Delivery?