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You are the water superintendent. One of your workers performs preventative maintenance (PM) in water meters. The worker spends three-fourth of his time on PM.

You are the water superintendent. One of your workers performs preventative maintenance (PM) in water meters. The worker spends three-fourth of his time on PM. His annual salary is 22,000, The city pays 7.65%, which is theĀ 

employer's share of Social Security, and 15% for hospitalization and pensions. PM supply costs are $2,500. The worker travels 10,000 miles while maintaining meters, for which the garage charges 20 cents per mile. Overhead costs applied to direct costs are 30 percent. A total of 3,500 meters were maintained. A private firm offers to do your PM for $10 a meter. Given the following information, should you contract out?

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