Reference no: EM132867887

Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows:

Demand
Staffing Options High Medium Low
Own staff 600 550 350
Outside vendor 900 650 450
Combination 700 600 400

What is the expected annual cost associated with that recommendation? If required, round your answer to the nearest thousand of dollars.

Expected annual cost = $ ____________ ( I put $500,00 getting wrong number)