How much would the company benefit by outsourcing

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Reference no: EM132502117

Question 1: 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 $150,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $37,000, and $27,000 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?

Group of answer choices

  1. $17,000.
  2. $47,000.
  3. $167,000.
  4. $197,000.

Reference no: EM132502117

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