Make an assumption that there are

3

workers and

1

supervisor in the firm.

Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for $200,000 per year. The 2015 budget is as follows. 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? Direct expenses Wages Benefits Maintenance, repair, and operating supplies Indirect expenses Supervisor salary Benefits Other office expenses $1,500 per worker per month 50% of wages per worker per month $3,500 per worker per month $2,500 per supervisor per month 50% of wages per supervisor per month $1,000 per supervisor per month