Current Attempt in Progress Jenson 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 $51 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 Direct labour costs Variable overhead Total hours of housekeeping services per year Total fixed overhead $4 $29 $2 3.060 $45.120 (a) Determine whether Jenson 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, es-15.000 or parenthesis, eg. (15,000).) Number of hours: 3,060 In-house Outsource Net Income Increase (Decrease) Cleaning supplies $ $ $ Direct labour Variable overhead (a) Determine whether Jenson 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).) Number of hours: 3,060 In-house Net Income Increase (Decrease) Outsource Cleaning supplies $ $ $ Direct labour Variable overhead Fixed costs Purchase price Total cost $ $ Jenson College outsource the services. Save for Later Attempts: 0 of 1 used Submit