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.

---

Definitions:

Stretching

A form of physical exercise aimed at improving flexibility and muscle elasticity by lengthening specific muscles or tendons.

Sex Differences

Variations in characteristics, behaviors, or conditions between males and females, often influenced by biological, psychological, or social factors.

Flexibility

The ability of a joint or series of joints to move through an unrestricted, pain-free range of motion.

Stretching

The process of gently elongating muscles and tendons to improve flexibility, range of motion, and reduce the risk of injury.