A small college is considering whether to outsource its IT $($information technology$)$ functions to an outside company rather than maintain its own IT department. The College estimates that it needs $5,000$ hours of IT service $($including on$-$call time$)$ per year. Currently the college's in$-$house IT department has fixed costs of $$40,000$ and each hour of service costs $$20\mathrm{.}00$ in hourly wages $($unit variable costs$).$ The college has found an outside IT provider that will offer this service at a flat $$25\mathrm{.}00$ per hour with no fixed costs.

$1.$ What is the break$-$even quantity $($the total number of hours $-$ production volume$)$ where the college would be better$-$off by keeping its IT functions in$-$house? Show your work $($equations$)$ or take a screenshot and post the solved Excel sheet you used. If you post a screenshot, make sure you do it correctly so that everyone can see it without downloading. Instructions for how to do this are in the Discussion Guidelines. $($

$2.$ Now write your own problem $($make it simple$)$ using a product or service that you use, a current or former employer, etc. Include all necessary numbers $($production volume, fixed costs, unit variable costs, and outsourced unit costs$).$ Solve it but don't post the solution.

Hint:

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