Please enlarge the attachment to view
Solution
Good Snack | |||
Outsourcing Decision Analysis | |||
Retain In House | Outsource to FMS | Difference | |
Annual Fee | 300,000 | ||
Annual Maintenance of Truck | 151,500 | ||
Supervisory's Annual Salary | 62,000 | ||
Total annual salary of Good Snack 5 other fleet employees | 190,000 | ||
less : Benefit achieved | -8,400 | ||
Total | 395,100 | 300,000 | 95,100 |
Thus , for Good Snack decision to Outsource To FMS is better as it is giving them profit by $ 95,100 |
Note** Book Value of truck is not considered because that is a fixed expenses which will incurred every year.
Please enlarge the attachment to view Good Snack manufactures and markets snack foods. Rita Casey manages...
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