with details

Outsourcing decision Question 1 Potts Sports is considering outsourcing its maintenance work. The total labor cost for the maintenance is $150,000 and the company has an offer from Robyn Maintenance to provide the service for $125,000. The maintenance equipment currently used cannot be sold and has annual depreciation of $10,000. The overhead allocated to the maintenance department is $20,000 per year and would not be avoidable. Based on the information given, (a) what should be done? (b) What if the equipment could not be sold but the overhead allocation decreased to $10,000? (c) What other non- quantitative factors should be done