Answer b only.

Current Attempt in Progress Jenson College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $51 per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services: Cost per hour of service: Cleaning supplies $4 Direct labour costs $29 Variable overhead $2 Total hours of housekeeping services per year 3,060 Total fixed overhead $45.120 (a) Determine whether Jenson College should outsource housekeeping, assuming that 50% of fixed costs can be eliminated if the service is outsourced. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g-15,000 or parenthesis, e.g. (15,000).) Number of hours: 3,060 In-house Net Income Outsource Increase (Decrease) Cleaning supplies $ S S Direct labour Variable overhead 9Attempts: 1 of 1 used (b) At what level of service (in hours) would Jenson generally be indifferent between providing housekeeping services or outsourcing them, assuming that 50% of fixed costs can be eliminated? (Round answer to O decimal places, e.g. 125.) Jenson's indifference point hours Save for Later Attempts: 0 of 1 used Submit Answer 10:58 AM 8/16/2080