As the CEO of your company, you have a total of 500 employees and recorded a net profit of $9 million in 2022. However, you have noticed that your call center, which consists of 75 employees, is incurring a significant expense of $3 million. You are now faced with a decision: whether to outsource the call center, which would result in the loss of jobs for the 75 employees, but would save you $2.5 million annually in expenses. What would you do? Would you choose to keep the 75 employees at their current salary or outsource the department to save $2.5 million per year? And most importantly, why would you make that decision?
In your 2022 net profit was $1 million. Given this information, would you choose to outsource the call center in order to reduce expenses by $2.5 million? Please explain your reasoning for either choosing to outsource or not.