Question
Torrey Pines is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $460,000 would be terminated; in contrast, administrative assistants who
Torrey Pines is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $460,000 would be terminated; in contrast, administrative assistants who earn $142,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $36,000, and $23,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Torrey Pines can secure needed H/R services locally for $480,000, how much would the company benefit by outsourcing?
$16,000.
$49,000.
$158,000.
$191,000.
Nothing, as it would be cheaper to keep the department open
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started