I do not understand what is actually supposed to be calculated in the question below? Can you advise me on what exactly needs to be calculated and how to do those calculations?
Last Group has a rental cost of €25,000 per month with a four-year lease term. Casual staff are employed on a weekly basis to carry out telephone sales. The cost of casual staff is €12,000 per month and telephone call costs are €5,000 per month. An offshore call centre has offered to carry out the telephone sales activity from its own premises and using its own staff and telephone services for a fixed payment of €15,000 per month. Should Last Group accept or reject the outsourcing proposal from the call centre? Please show all calculations.
Decision: Last Group should accept the outsourcing proposal... View the full answer