Take me to the text Limestone 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. Limestone Hotel Laundry Production Costs For the Year Ended December 31, 2020 Direct Materials Direct Labour Housekeeping Supervisor Per kg 11,000 kg $4.00 $44,000| $8.00 $88,000 $7.00 $77,000 Depreciation of laundry equipment $4.00 $44,000 Allocated Fixed Costs Total Cost $5.00 $55,000 $28.00 $308,000| An external company has offered to process 11,000 kg of laundry per year at a price of $15 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 $69,300. Should the company continue to 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. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Limestone Hotel Laundry Outsource Analysis Total Differential Cost (11,000 kg) In-house Outsource EA EA A EA EA EA EA EA EA A EA Production Cost Per kg Per kg Differential Cost In-house Outsource Direct Materials $4.00 $ $ Direct Labour $8.00 $ Housekeeping Supervisor $7.00 $ $ Depreciation of Laundry Equipment| $4.00 $ $ Allocated Fixed Costs $5.00 $ Total Relevant Cost $28.00 $ $ Outsource Price The company should: Check EA A EA