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).)

Cost per hour of service:
Cleaning supplies		$3
Direct labour costs		$30
Variable overhead		$1
Total hours of housekeeping services per year		3,260
Total fixed overhead		$51,520

Number of hours: 3,260		In-house		Outsource		Net Income Increase (Decrease)
Cleaning supplies		$		$		$
Direct labour
Variable overhead
Fixed costs
Purchase price
Total cost		$		$		$

should jenson college outsource the services?

At what level of service (in hours) would Jenson generally be indifferent between providing housekeeping services or outsourcing them, assuming that 50% of fixed costs can be eliminated? (Round answer to 0 decimal places, e.g. 125.)please show the working for each answer

Jenson's indifference point

hours