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American Printing Company’s information technology departmentadministers the company’s material requirements planning andgeneral ledger systems. It also provides support to thecomputer-based shop floor reporting and payroll systems, as well aspersonnel computing services for each department’sadministration.Recently, American Printing’s Controller, Sally Sound, has beenconsidering outsourcing IT operations to Cloud computing providersto minimize support department expenses. She has been reviewingpotential contracts with Cloud suppliers, and interviewed themanagers of departments that receive support from the current ITdepartment. Sally Sound determines that the cost savings areapproximately $250,000 for the company. Its revenues are presently$50 million.For this discussion:What are the qualitative considerations for the elimination ofsupport departments when strategically minimizing costs?What are the quantitative considerations that the Controllermust include in the calculation?What might the inputs in the decision be if the space and laborcosts can be removed in the short run of one year?