York Hotel currently launders all of its towels and sheets in the basement of the hotel. The companys accounting department has reported the following annual costs of laundering internally.York HotelLaundry Production CostsFor the Year Ended December $31,2020$Per kg$15,000$ kgDirect Materials$$4\mathrm{.}00$$$60,000$Direct Labour$$12\mathrm{.}00$$$180,000$Housekeeping Supervisor$$10\mathrm{.}00$$$150,000$Depreciation of laundry equipment$$3\mathrm{.}00$$$45,000$Allocated Fixed Costs$$8\mathrm{.}00$$$120,000$Total Cost$$37\mathrm{.}00$$$555,000$An external company has offered to process $15,000$ kg of laundry per year at a price of $$20$ per kg$.$Also consider the following information:The laundry equipment has no salvage value and has no other use aside from processing the laundry. It cannot be sold.The fixed costs allocated to the laundry are common to the whole housekeeping department.The supervisor will take over duties in another department if the laundry is processed at the external company. If this is the case, the supervisors annual salary will drop to $$135,000.$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.Limestone HotelLaundry Outsource AnalysisProduction Cost Per kgPer kg Differential CostTotal Differential Cost $(15,000$ kg$)$In$-$houseOutsourceIn$-$houseOutsourceDirect Materials$$4\mathrm{.}00$$Answer$Answer$Answer$AnswerDirect Labour$$12\mathrm{.}00$$Answer$Answer$Answer$AnswerHousekeeping Supervisor$$10\mathrm{.}00$$Answer$Answer$Answer$AnswerDepreciation of Laundry Equipment$$3\mathrm{.}00$$Answer$Answer$Answer$AnswerAllocated Fixed Costs$$8\mathrm{.}00$$Answer$Answer$Answer$AnswerOutsource Price$Answer$Answer$Answer$AnswerTotal Relevant Cost$$37\mathrm{.}00$$Answer$Answer$Answer$AnswerThe company should: Answer