Torrey Pines Is Studying Whether to Outsource Its Human Resources

question 21

Multiple Choice

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 $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 Torrey Pines 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:

Branching Mechanisms

The feature in programming and version control systems that allows for the divergence from the main line of development, to experiment or to work on different tasks simultaneously.

Break Statements

Instructions in programming that cause the immediate termination of a loop, switch, or labeled block.

Switch Statement

A switch statement is a control flow statement that allows a variable to be tested against a list of values, each with its own code block to execute.

Syntax Error

A mistake in the code that causes the program to fail to compile or run correctly.