Marx College is considering outsourcing grounds maintenance. In this regard, Marx has received a bid from Highline Grounds Maintenance for $291,700 per year. Highline states that its bid will cover all services and planting materials required to keep Marxs grounds in a condition comparable to prior years. Marxs cost for grounds maintenance in the preceding year were $300,400, as follows:

Salary of three full-time gardeners		$184,400
Plant materials		79,800
Fertilizer		11,000
Fuel		13,200
Depreciation of tractor, mowers, and other miscellaneous equipment		12,000
Total		$300,400

If Marx College outsources maintenance, it will be able to sell equipment for $30,700, and the three gardeners will be laid off.

Analyze the one-year financial impact of outsourcing grounds maintenance.

Net select an option benefitcost of outsourcing in year 1 is

$enter a dollar amount .

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How will savings in the second year differ from those in year 1?

In the second year, savings will select an option decreaseincrease by $enter a dollar amount . There will be a net select an option costbenefit of $enter a dollar amount .