Reference no: EM133123731

Question - A magazine is facing dwindling subscriptions and is thinking about closing down its team responsible for restaurant reviews to cut costs. It currently writes between 900 to 1,100 reviews a year. The team consists of one senior journalist with a permanent employment at the magazine, who would likely be reassigned within the company after the closure. Her yearly salary cost is £60,000. Moreover, the team employs one part time journalists on hourly contract that on average is costing the magazine £40,000 a year. The team's office space is allocated a facility cost of £12,000 a year and the team spend on average about £50,000 on travel and restaurant expenses a year. Instead of having the team, the magazine would then buy restaurant reviews from a third-party provider at a cost of £140 per review. How much will the magazine save per year if it closes its team?

A. Costs decrease between £9,000 to £11,000 per year

B. Costs neither increase nor decrease

C. Costs decrease between £19,800 to £24,200 per year

D. Costs increase between £45,000 to £55,000 per year

E. Costs increase between £81,000 to £99,000 per year