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Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $297,620 per year. Highline states

Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $297,620 per year. Highline states that its bid will cover all services and planting materials required to keep Oaklands grounds in a condition comparable to prior years. Oaklands cost for grounds maintenance in the preceding year were $303,700, as follows: Salary of three full-time gardeners $191,000 Plant materials 78,000 Fertilizer 11,100 Fuel 12,200 Depreciation of tractor, mowers, and other miscellaneous equipment 11,400 Total $303,700 If Oakland College outsources maintenance, it will be able to sell equipment for $31,900, and the three gardeners will be laid off. In the second year, savings will decrease by $31900 There will be a net cost of $__________? This is the second time I have asked this question. Here is my notes below How will savings from in the second year differ from those in year 1 ? the answer is 26,580. I got this by 292,300+31900=324,200 - 297,620 = 26580. There will be a net cost of $__________????

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