4. Mueller has been approached about providing
a new service to its clients. The company will bill clients $160
per hour; the related hourly variable and fixed operating costs
will be $70 and $18, respectively. If all employees are currently
working at full capacity on other client matters, the per-hour
opportunity cost of being unable to provide this new service
is:
$90.
$160.
$88.
$72.
$0.
6. 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 $148,000 would be transferred
elsewhere in the organization. Miscellaneous departmental overhead
(e.g., supplies, copy charges, overnight delivery) is expected to
decrease by $35,000, and $26,000 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?
$15,000.
$44,000.
$163,000.
$192,000.
Nothing, as it would be cheaper to keep the department open.
