Question

Torrey pines is studying whether to outsource its human resources (h/r) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.G., supplies, copy charges, overnight delivery) is expected to decrease by $30,000, and $25,000 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 $410,000, how much would the company benefit by outsourcing

Answer 1

Answer:

Torrey pines is studying whether to outsource its human resources (h/r) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.G., supplies, copy charges, overnight delivery) is expected to decrease by $30,000, and $25,000 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 $410,000, how much would the company benefit by outsourcing