Charted Travel & Tours (CTT) is studying whether to outsource its human resources (HR) activities. Salaried professionals who earn GH 195,000 would be terminated; in contrast, administrative assistants who earn GH60,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g. supplies, copy charges, overnight delivery) is expected to decrease by GH15,000, and GH17,500 of corporate overhead cost, previously allocated to HR, would be picked up by other departments. If CTT can secure needed HR services locally for GH205,000, should CCT outsource? And how much would CCT benefit (or lose) by outsourcing?

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