Question
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
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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