Cosidering outsourcing the maintenance

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Reference no: EM131712027

Granville Community College is cosidering outsourcing the maintenance of its buildings and other facilities to an outside firm for $300,000 per year. The 2015 budget is as follows:

Direct Expenses:

Wages: $2,500 per worker per month

Benefits: 35% of wages per worker per month

Maintenance, repair, and operating supplies: $2,000 per worker per month

Indirect Expenses:

Supervisor salary: $3,000 per supervisor per month

Benefits: 40% of wages per supervisor per month

Other office expenses: $500 per supervisor per month

Make an assumption that there are 4 workers and 1 supervisor in the firm.

The total cost per year of the insourcing option is ______ (Enter your response as a whole number)

The total cost per year of the outsourcing option is ______ (Enter your response as a whole number)

Reference no: EM131712027

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