Bonita College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $$50$ per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services:

Cost per hour of service:

Cleaning supplies

$$3$

Direct labour costs

$$27$

Variable overhead

$$2$

Total hours of housekeeping services per year

$3,120$

Total fixed overhead

$$51,840$

Determine whether Bonita College should outsource housekeeping, assuming that $50\%$ of fixed costs can be eliminated if the service is outsourced. $($If an amount reduces the net income then enter with a negative sign preceding the number, e$.$g$-15,000$ or parenthesis, e$.$g$.(15,000).$ While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.$)$

Number of hours: $3,120$

Cleaning supplies

In$-$house

Outsource

Net Income

Increase $($Decrease$)$

$

$

$

Direct labour

Variable overhead

Fixed costs

Purchase price

Total cost

$

$

$

$=$ SUPPORT

Bonita College

outsource the services.