BangorLid. is considering using the services of a payroll bureau to pay its employees. At the moment, the employee timesheets are collected by Sarah a mentber of the finance adepartment, who then enters the information into a payroll software package. Streeis also responsible for office administration anditraining in the budgeting department. The total annual cost of expploying Sarah is $28,900op.a. The concern is that there isn't enough time to collect the timesheets and process them, in order to have the payslips ready by Friday afternoons. It has been calculated that 4 hours of Sarah's seven and a half hour day is needed to collect the timesheets and then enter theem into the payroll software but she usually only has about 7/ hours a week for this job. Sarah uses a scammerto enter in the information, which is rented at a cost of $477 per month. with nomminimum rental period. The printer used to print out the payslips is also rented at a cost of 160 per month. the agreement was for 36 months and was signed 5months ago. The subscription for the payroll software is 6756 per month , reoneweldon a yearly, basis The payroll bureau has proposed an annual contract at a cost of 65,000 cayear. BangorLid. have asked other users of the bureau and they have all confurned their satisfaction with its, Service. Based on these figures. should Bangor Lid. outsource its provision and identify 3qualitative factors it should also consider. (8marks) c. Bangor Lid also produce, the Thunder, which has been in production for A number of years, and to date 635 units of the Ricardo have been produced. The budget for the next quater is showing the production of 60 units of the Thunder. If the 15 ever unit took 100 hours and an 80% learning curve applies: O). Calculate the total labours hours needed for thre production of 69 units, units of the Thunder.



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