What is the finacial advantage (disadvantage) of outsourcing the Payroll Department?

Express Delivery Company (EDC) is considering outsourcing its Payroll Department to a payroll processing company for an annual fee of $220,200. An internally prepared report summarizes the Payroll Department's annual operating costs as follows: EDC currently rents overlow office space for $36.200 per year. If the company closes its Payroll Department, the employees occupying the rented office space could be brought in-house and the lease agreement on the rented space could be terminated with no penalty. If the Payroll Department is outsourced the payroll clerks will not be retained; however, the supervisor would be transferred to the company's Human Resource Management Department. As a result of this transfer, the company would discontinue its efforts to hire a new Human Resource Manager that it expected to pay an annual salary of $56,200. The Payroll Department's equipment would be transferred to other departments within the company to replace outdoted equipment that would be recycled for zero salvage value