Cals Carpentry is considering outsourcing its accounts receivable function. Currently, Cal employs two full-time clerks and one part-time clerk to manage accounts receivable. Each full-time clerk has an annual salary of $38,000 plus fringe benefits costing 27 percent of their salary. The part-time clerk makes $19,000 per year but has no fringe benefits. Total salary plus fringe cost is $115,520. Cal estimates that each account receivable incurs a $10 variable cost. The Small Business Accounts Receivables Group (SBARG) specializes in handling accounts receivable for small- to medium-size companies. Doris Roberts from SBARG has offered to do the accounts receivable for Cals Carpentry at a fixed cost of $88,520 per year plus $29 per account receivable. Next year, Cal expects to have 1,800 accounts receivable.

Calculate the cost for Cals Carpentry to continue doing accounts receivable in-house.