** the answer is not 600

Golden \& Sheridan, a legal services firm, is considering outsourcing its payroll function. It has received a bid from ABC Payroll Services for $21,850 per year. ABC Payroll will provide all payroll processing, including employee checks and payroll tax reporting. Golden \& Sheridan's costs for payroll processing in-house over the past year were as follows: Currently the payroll clerk works only on payroll processing, and will be laid off if payroll is outsourced. The human resources manager spends 25 percent of her time currently on payroll-related issues. She will be retained at 100% even if the company outsources. The computers would remain and be used for other tasks if payroll is outsourced. What is the annual impact of outsourcing payroll