• Canyon Trails is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $30,000, and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Canyon Trails can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing?

• a. $130,000.

• b. $10,000.

• c. Nothing, as it would be cheaper to keep the department open.

• d. $35,000.

• e. $155,000.

Answer rating: 100% (QA)

Option 2nd is correct ie 10000 Please find ... View the full answer