Aztec Industries is considering outsourcing their payroll function for staff to an outside firm for $550,000 per year. The 2024 budget is as follows: Direct Expenses Wages $4,500 per payroll clerk per month Benefits 35% of wages per payroll clerk per month IT Support and software $1,500 per payroll clerk per month Indirect Expenses Supervisor Salary $7,000 per supervisor per month Benefits 55% of salary per supervisor Other office expenses $6,000 per supervisor per month You have been tasked to calculate the total cost per year for Aztec Industries to continue insourcing their payroll function. You know that Aztec Industries' current payroll department is staffed by 4 payroll clerks and 1 supervisor. What is the total cost per year to continue insourcing? (10 marks) Based on your calculations, which should Aztec Industries outsource or continue to insource its payroll functions? (1 mark) How much money do they save by using this option? (1 mark)

Answer rating: 100% (QA)

To calculate the total cost per year for Aztec Industries to continue insourcing their payroll function we need to consider both the direct and indire... View the full answer