Priscilla Daley manages a fleet of 250 delivery trucks for Pulley Corporation. Daley performed the following analysis: ?(Click the icon to view the outsourcing decision analysis.) Read the requirements. (Click the icon to view additional information.) Requirement 1. Which alternative will maximize Pulley's short-term operating income? In order to maximize short-term operating income, Pulley Corporation should because the variable cost of outsourcing to FMS results in Requirement 2. What qualitative factors should Pulley consider before making a final decision? of S O A. Will FMS provide speedy maintenance and repairs? O B. Will FMS provide the level of service Pulley needs? ? c. Will FMS quickly and satisfactorily handle calls and questions from Pulley's employees who are driving the trucks? ?D, Will laying off five employees hurt the morale and productivity of other employees remaining with Pulley? O E. All of the above F. None of the above More Info Daley 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 Daley to lay off her five employees. However, her own job would be secure; she would be Pulley's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $8,000 per year to lease. FMS offers to manage this fleet for an annual fee of $295,000. Priscilla Daley manages a fleet of 250 delivery trucks for Pulley Corporation. Daley performed the following analysis: ?(Click the icon to view the outsourcing decision analysis.) Read the requirements. (Click the icon to view additional information.) Requirement 1. Which alternative will maximize Pulley's short-term operating income? In order to maximize short-term operating income, Pulley Corporation should because the variable cost of outsourcing to FMS results in Requirement 2. What qualitative factors should Pulley consider before making a final decision? of S O A. Will FMS provide speedy maintenance and repairs? O B. Will FMS provide the level of service Pulley needs? ? c. Will FMS quickly and satisfactorily handle calls and questions from Pulley's employees who are driving the trucks? ?D, Will laying off five employees hurt the morale and productivity of other employees remaining with Pulley? O E. All of the above F. None of the above More Info Daley 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 Daley to lay off her five employees. However, her own job would be secure; she would be Pulley's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $8,000 per year to lease. FMS offers to manage this fleet for an annual fee of $295,000
