3. Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for $300,000 per year. The 2009 budget is as follows:

a. (*) Calculate the total costs of insourcing versus outsourcing maintenance.

b. (**) What other reasons, besides costs, might Granville look at when deciding whether or not to outsource maintenance activities?

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GRANVILLE MAINTENANCE BUDGET-2009 Direct expenses (per worker) Wages-$2500 per worker, per month Benefits-35% of wages per worker, per month Maintenance, repair, and operating supplies- $2000 per worker, per month Indirect expenses Supervisor salary-$3000 per month Benefits-40% of wages Other office expenses-$500 per month