Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to...
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Accounting
Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for $350,000 per year. The 2015 budget is as follows.
Make an assumption that there are 2 workers and 1 supervisor in the firm.
The total cost per year of the insourcing option is $nothing. (Enter your response as a whole number.)
The total cost per year of the outsourcing option is $nothing. (Enter your response as a whole number.)
Direct expenses
Wage
4,500
per worker per month
Benefits
60%
of wages per worker per month
Maintenance, repair, and operating supplies
4,500
per worker per month
Indirect expenses
Supervisor salary
$5,000
per supervisor per month
Benefits
75%
of wages per supervisor per month
Other office expenses
$2,500
per supervisor per month
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