The CMM Company is facing shortage in office space and is deciding to move three accounting staff to the noisy factory office and leaving the other eight account payable staff in the office area. In addition, recent rise in minimum wage has resulted in rising salaries as well as some employee benefits. As a result, CMM has decided to outsource one of its non-value added processes.

As leader of the team, you must write the memo to the CEO, explaining why your team chose to outsource the payroll function to be outsourced to Payroll Services at an estimated cost of $6,500 per month. Currently, the payroll function comprises of two junior and one supervisory position. Explain to the CEO the qualitative and quantitative impacts of your team's decision on the business.