Question

Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for ​$400,000 per year. The 2015 budget is as follows.

Make an assumption that there are 4 workers and 1 supervisor in the firm. The total cost per year of the insourcing option is ​$1092510925. (Enter your response as a whole​ number.) The total cost per year of the outsourcing option is ​$? ​ (Enter your response as a whole​ number.) Enter your answer in each of the answer boxes.

More Info

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

     

Direct expenses
Wages	​$4,500 per worker per month
Benefits	40​% of wages per worker per month
​Maintenance, repair, and operating supplies	​$1,000 per worker per month
Indirect expenses
Supervisor salary	​$6,500 per supervisor per month
Benefits	45​% of wages per supervisor per month
Other office expenses	​$1,500 per supervisor per month

Answer 1

Total cost of outsourcing is $481500