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Krista Haley manages a fleet of 350 delivery trucks for Jones Corporation. (Click the icon to view additional information.) Haley performed the following analysis: B (Click the icon to view the outsourcing decision analysis.) Read the requirements. Requirement 1. Which alternative will maximize Jones's short-term operating income? In order to maximize short-term operating income, Jones Corporation should because the variable cost of outsourcing to FMS results in of $ Requirement 2. What qualitative factors should Jones consider before making a final decision? . i Data Table O A. Will FMS quickly and satisfactorily handle calls and questions from Jones's employees who are driving the trucks? O B. Will laying off five employees hurt the morale and productivity of other employees remaining with Jones? OC. Will FMS provide the level of service Jones needs? OD. Will FMS provide speedy maintenance and repairs? O E. All of the above OF. None of the above Outsource To FMS Retain In-House $ 9,750 147,000 Difference 9,750 147,000 Annual leasing fee for software Annual maintenance of trucks Total annual salaries of five laid-off employees Fleet Management Service's 185,000 185,000 400,000 (400,000) annual fee Total differential cost of 341.750 $ 400,000 S (58,250) Outsourcing Print Done

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