Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside rm for $300,000
Granville Maintenance Budget—2013
Direct expenses (per worker)
• Wages—$2,500 per worker per month
• Benefts—35% of wages per worker per month
• Maintenance, repair, and operating supplies—$2,000 per worker per month
• Supervisor salary—$3,000 per month
• Benefts—40% of wages
• Other office expenses—$500 per month
a. Calculate the total costs of insourcing versus outsourcing maintenance.
b. What other reasons, other than costs, might Granville look at when deciding whether to outsource maintenance activities?
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Question Posted: April 10, 2015 10:08:56