[muroyiwa]

hey Kim

I did the calculation as follows (Option B) but it shows incorrect answer. Stuck on this from past few weeks. Please tell me where I am wrong.

1. The annual cost of outsourcing the accounting function = 292
2. The total cost of making the staff redundant under the outsource option= 25%((2FQ)+4(PQ)+8T)
= 25%*370
= 92.5
3. other non-staff accounting department costs= 60%* 240
=144
4. The retained skeleton staff, post-outsourcing= 1.2(45*2)+1.2(30)+70
=214
my Total accounting cost is 742.5

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