Granville Community College is considering outsourcing the maintenance of its bu
ID: 343583 • Letter: G
Question
Granville Community College is considering outsourcing the maintenance of its buildings and other facilities to an outside firm for $300,000 per year. The 2015 budget is as follows. Click the icon to view the budget table. Make an assumption that there are 4 workers and 1 supervisor in the firm. The total cost per year of the insourcing option is SLI (Enter your response as a whole number The total cost per year of the outsourcing option is SEnter your response as a whole number) More Into rect expenses Wages Benefits Maintenance, repair, and operating supplies$2.000 per worker per month Indirect expenses Supervisor salary Benefits Other office expenses $2,500 per worker per month 35% of vrages per worker per month 53,000 per supervisor per month 40% of wages per supervisor per month 500per supervisor per month Print DoneExplanation / Answer
the total cost of each employee is as follows:
salary = 2500 per month, benefits 35% on 2500, i.e.= 2500*0.35= $875, and maintanance cost is 2000 per month
per month cost per employee= 2500+875+2000= $5375
there are 4 workers, and total workers cost per month is= 5375*4= $21,500
per annum= 21,500*12= $258,000
the cost of superwisor= salary 3000 per month, the benefits= 3000*0.40= 1200 and other expenses are $500
total cost of superwisor per month= 3000+1200+500= $4700
per year= 4700*12= $56,400
the total cost of maintaining= $258,000+56,400= $314,400
Hence the outsourcing cost is $300,000 per annum, it is better to go with outsourcing only. (with this information, it is advised to go for outsourcing than maintaning)
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