Greety Food in Ashland, Kentucky, manufactures and markets snack foods. Sita Lee manages the company's fleet of 220 delivery trucks. Lee has been charged with *reengineering* the fleet-management function. She has an important decision to make.
(Click the icon to view the decision Lee has to make.)
Assume that Lee's records show the following data concerning Greely Food's fleet:
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Suppose that Fleet Management Services offers to manage Greely Food's fleet for an annual fee of $276,000. Which alternative will maximize Greely Food's short-term operating income?
Complete the following analysis. (Enter a V for any zero amounts. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in an outsourcing decision.)
Operating income for Greely Food will.............. by $......... if it outsources the fleet-management function.