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Wheeler Food in Ashland, Kentucky, manufactures and markets snack foods. Gita Bailey manages the company's fleet of 200 delivery trucks. Bailey has been charged with
Wheeler Food in Ashland, Kentucky, manufactures and markets snack foods. Gita Bailey manages the company's fleet of 200 delivery trucks. Bailey has been charged with "reengineering" the fleet-management function. She has an important decision to make. (Click the icon to view the decision Bailey has to make.) Assume that Bailey's records show the following data concerning Wheeler Food's fleet: (Click the icon to view the data.) Suppose that Fleet Management Services offers to manage Wheeler Food's fleet for an annual fee of $274,000. Which alternative will maximize Wheeler Food's short-term operating income? Complete the following analysis. (Enter a "0" for any zero amounts. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing decision.)
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