Torrey Pines is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $460,000 would be terminated in contrast, administrative assistants who earn $150,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $37,000, and $27,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Torrey Pines can secure needed H/R services locally for $480,000, how much would the company benefit by outsourcing?

Group of answer choices

$17,000.

$47,000.

$167,000.

$197,000.

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