Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $300,000per year. Highline states that its bid will cover all services and planting materials required to "keep Oakland's grounds in a condition comparable to prior years." Oakland's cost for grounds maintenance in the preceding year were $309,000, as follows:

Salary of Three Full-time Gardeners:$195,000

Plant Materials:80,000

Fertilizer:10,000

Fuel:12,000

Depreciation of Tractor, Mowers, and Other Misc. Equip:12,000

Total:$309,000

If Oakland College outsources maintenance, it will be able to sell equipment for $30,000, and the three gardeners will be laid off.

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

b.)How will savings in the second year differ from those in year one?

c.)Discuss qualitative factors that should be considered in the decision.