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You have just taken over the management of an organization where cleaning services have been outsourced at 1.240.000, including: s Expenditure Value in 1 Payroll

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You have just taken over the management of an organization where cleaning services have been outsourced at 1.240.000, including: s Expenditure Value in 1 Payroll and replacement costa for 63 full-time employees 836.000 2 Consumables 80.000 3 Personal hygiene products (toilet paper, hand towels, sponges) 31.000 Tools and cleaning machines (depreciation, damage, 4 7.000 maintenance) 5 Uniforms (purchase and washing) 3.000 6 Administrative costs 28.000 7 Contract turnover 15.000 8 VAT 24% 240.000 Total 1.240.000 an case of absence (sick leave etc.) the contractor has to replace the absentee. Thus, 2.520 man-hours per week (63 people x 5 days per week x 8 hours per day) are provided for each one of the 52 weeks of the year. Alternatively, the organization may discontinue the outsourcing contract, recruit cleaners and purchase cleaning materials and equipment. In this case, you estimated the following costs: Average labor cost of 1,270 / employee / month (12 months / year), which raises by 4% on completion of 3 years of work. Supply of materials and operating costs similar to those of the contractor (n / a 2,3,5) of 140,000 / year. Acquisition of cleaning equipment at 54.000 of a 5-year useful life, at the end of which it will not be usable. Equipment maintenance and repairs at 1,000 / year. Administrative costs at 4,000 / year. Questions i) If you decide to hire 63 people, how will the quantity of cleaning services be affected

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