Canyon Trails Is Studying Whether to Outsource Its Human Resources

question 7

Multiple Choice

Canyon Trails 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 Canyon Trails can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing?

• A) $10,000.
• B) $35,000.
• C) $130,000.
• D) $155,000.
• E) Nothing, as it would be cheaper to keep the department open.

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Definitions:

Personnel Department

A division within an organization focused on managing employee-related tasks, such as hiring, training, and addressing workplace issues.

External Concern

Issues or factors outside an organization that affect its operations or decisions.

Health Care Organizations

Institutions that provide medical services, support, and information to the people who need them, including hospitals, clinics, and outpatient care centers.

High-stress

Situations or environments that impose a great deal of pressure and strain on individuals, leading to potential health or mental well-being issues.