Please do requirements & show calculation. First drop down is: Outsource to FM or Continue to manage the fleet in house.

Priscilla Moody manages a fleet of 250 delivery trucks for Anderson Corporation. (Click the icon to view additional information.) Requirements 1. 2. Which alternative will maximize Anderson's short-term operating income? What qualitative factors should Anderson consider before making a final decision? Requirement 1. Which alternative will maximize Anderson's short-term operating income? In order to maximize short-term operating income, Anderson Corporation should because the variable cost of outsourcing to FMS results in of Print Done additional costs of a cost savings of More Info Data Table Outsource To FMS Moody 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 Moody to lay off her five employees. However, her own job would be ecure; she would be Anderson'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 $375,000. Retain In-House Difference $ 10,000 $ 10,000 Annual leasing fee for software Annual maintenance of trucks Total annual salaries of five laid-off employees 152,000 152,000 160,000 160,000 (375,000) $ 375.000 Fleet Management Service's annual fee Print Done $ 322,000 $ 375,000 $ (53,000) Total differential cost of outsourcing