PROBLEM 7-2. Incremental Analysis of Outsourcing Decision [LO 1, 2] Oakland College is con- sidering outsourcing grounds maintenance. In this regard, Oakland has received a bid from High line Grounds Maintenance for $300,000 per year. Highline states that its bid will cover all services and planting materials required to "keep Oakland's grounds in a condition comparable to prior years." Oakland's cost for grounds maintenance in the preceding year were $309,000, as follows: Salary of three full-time gardeners $195,000 Plant materials 80,000 Fertilizer 10,000 Fuel 12,000 Depreciation of tractor, mowers, and other miscellaneous equipment 12,000 Total $309,000 If Oakland College outsources maintenance, it will be able to sell equipment for $30,000, and the three gardeners will be laid off. REQUIRED a. Analyze the 1-year financial impact of outsourcing grounds maintenance b. How will savings in the second year differ from those in year 1? . Discuss qualitative factors that should be considered in the decision c