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 $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		$5
Direct labour costs		$30
Variable overhead		$1
Total hours of housekeeping services per year		3,130
Total fixed overhead		$54,320

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: 3,130		In-house		Outsource		Net Income Increase (Decrease)
Cleaning supplies		$		$		$
Direct labour
Variable overhead
Fixed costs
Purchase price
Total cost		$		$		$

Jenson College should notshould 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.)

Jenson's indifference point

hours