Required: fill in the yellow cells and also the name of the costs listed under the cost savings. The "Cost of RGB" has been filled in for you.
What is the incremental cost of going outside versus conducting the survey as in the past?
	Cost of RGB			$ 35,000
	Less cost savings:
	Incremental cost of outsourcing

Exercise 7-5 Incremental Analysis (16 points)
Problem data follows:
	Annual number of customers surveyed			7,600
	Cost of survey if conducted by RBG Associates		$ 35,000
Costs related to the survey in the prior year.
	Mailing					$17,500
	Printing (done by Lester Print Shop)			6,000
	Salary of Pat Fisher, part-time employee who stuffed envelopes
		and summarized data when surveys were returned	2,080
	Depreciation of computer and software			1,200
	Electricity and phone costs			600
	Total					$27,380
	Number of hours spent on survey by Pat Fisher		130
Required: fill in the yellow cells and also the name of the costs listed under the cost savings. The "Cost of RGB" has been filled in for you.
What is the incremental cost of going outside versus conducting the survey as in the past?
	Cost of RGB			$ 35,000
	Less cost savings:
	Incremental cost of outsourcing
Craig Knight, the president of Knight Motors, believes that RBG will do a higher-quality job than his company has been doing.
However, he is unwilling to spend more than $10,000 above current costs.
Will Craig Knight accept the RBG offer? Explain in detail why or why not given his cost ceiling.