Simcoe Hotel currently launders all of its towels and sheets in the basement of the hotel. The company's accounting department has reported the following annual costs of laundering internally. Quiz navigation ut of Simcoe Hotel Laundry Production Costs For the Year Ended December 31, 2020 Per kg|7,000 kg Direct Materials $5.00| $35,000 Direct Labour |$10.00| $70,000 $10.00| $70,000 Housekeeping Supervisor Depreciation of laundry equipment $2.00| $14,000 $7.00 $49,000 Allocated Fixed Costs $34.00|$238,000 Total Cost An external company has offered to process 7,000 kg of laundry per year at a price of $18 per kg Also consider the following information: The laundry equipment has no salvage value and has no other use aside from processing the laundry. It cannot be sold The fixed costs allocated to the laundry are common to the whole housekeeping department The supervisor will take over duties in another department if the laundry is processed at the external company. If this is the case, the supervisor's annual salary will drop to $63,000 anourg te comipany contnue t process laundry internally or begin using the external company? Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Limestone Hotel Laundry Outsource Analysis Production Cost Per Per kg kg Differential Cost Total Differential Cost (7,000 kg) In-house Outsource In-nouse Outsource Direct Materials $5.00 Direct Labour $10.00 Housekeeping Supervisor $10.00 Depreciation of Laundry Equipment $2.00 Contact us! Allocated Fixed Costs $7.00 Outsource Price Total Relevant Cost $34.00 The company should