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CoprGoedShelly owns a small company and currently provides customer service in-house. A company offered to...

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Accounting

CoprGoedShelly owns a small company and currently provides customer service in-house. A company offered to handle customer service calls for her. The company would charge $1,250 per month. She currently pays one part-time employee $15 per hour. The employee works from home answering calls and bills her approximately 20 hours per week. The employee would be terminated if she outsources this service. She provides a company number for the employee. She allocates $90 of the monthly telephone expense to the customer service function. She is only using 12 of the 15 unique numbers that come with her telephone service. If she outsources customer service and quits using the internal customer service number her telephone bill will not decrease. What would be the annual effect of outsourcing customer service?

a) 600

b) (600)

c) (1680)

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