The Tidy Tax Return Co. employs 50 extra people for the period February 1 through April 30 each year in order to process a large volume of tax returns. Each employee receives $10 per hour and works 40 hours a week (for 14 weeks). Early in May, all 50 additional workers are laid off.
A personnel service has offered to supply the needed 50 workers at a cost of $12 per hour. The managers of Tidy Tax Return Co. are not sure whether to accept the new offer.
Please prepare a memo to the management outlining the advantages of using the personnel service bureau and also the advantages of continuing with the present arrangement. Do not restrict your answer to financial considerations only.