Rita Nailey manages a fleet of 375 delivery trucks for Yankey Corporation. (Click the icon to view additional information.) Nailey performed the following analysis: : (Click the icon to view the outsourcing decision analysis.) Read the requirements. More Info Requirement 1. Which alternative will maximize Yankey's short-term operating income? In order to maximize short-term operating income, Yankey Corporation should because the variable cost of outsourcing to FMS results in of $ Requirement 2. What qualitative factors should Yankey consider before making a final decision? A. Will FMS provide the level of service Yankey needs? OB. Will FMS provide speedy maintenance and repairs? O C. Will laying off five employees hurt the morale and productivity of other employees remaining with Yankey? OD. Will FMS quickly and satisfactorily handle calls and questions from Yankey's employees who are driving the trucks? O E. All of the above Data Table OF. None of the above Nailey 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 Nailey to lay off her five employees. However, her own job would be secure; she would be Yankey's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $9,750 per year to lease. FMS offers to manage this fleet for an annual fee of $260,000. Print Done Retain In-Hous Outsource To FMS Difference $ 9,750 9,750 Annual leasing fee for software Annual maintenance of trucks 154,000 154,000 Total annual salaries of five laid-off employees Fleet Management Service's 185,000 185,000 $ 260.000 annual fee (260,000) Choose from any list or enter any Total differential cost of 348,750 $ 260,000 $ 88,750 outsourcing