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Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to...

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Question

Accounting

Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for $350,000 per year. The 2015 budget is as follows.

Make an assumption that there are 2 workers and 1 supervisor in the firm.

The total cost per year of the insourcing option is $nothing. (Enter your response as a whole number.)

The total cost per year of the outsourcing option is $nothing. (Enter your response as a whole number.)

Direct expenses

Wage

4,500

per worker per month

Benefits

60%

of wages per worker per month

Maintenance, repair, and operating supplies

4,500

per worker per month

Indirect expenses

Supervisor salary

$5,000

per supervisor per month

Benefits

75%

of wages per supervisor per month

Other office expenses

$2,500

per supervisor per month

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