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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?
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