If oakland college outsources maintenance it will be able

Reference no: EM13591080

Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $295,000 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 $302,000 as follows:

Salary of three full-time gardeners $195,000
Plant materials 80,000
Fertilizer 7,000
Fuel 8,000
Depreciation of tractor,mowers, and other
miscellaneous equipment 12,000
Total $302,000

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 one-year financial impact of outsourcing grounds maintenance.
b. How will savings in the second year differ from those in year 1?
c. Discuss qualitative factors that should be considered in the decision.

Reference no: EM13591080

Questions Cloud

Due to increased mailing costs the new rate will cost : due to increased mailing costs the new rate will cost publishers 36 million this is 13.5 more than they paid the

Anuj has been serving 23 cups of lemonade to each student : anuj has been serving 23 cups of lemonade to each student. if he has 1 12 cups of lemonade left how many students can

In 2040 your investment account along with your retirement : in 2040 your investment account along with your retirement fund has resulted in a tidy sum of 3.75 million dollars so

A uniform rope of mass 110 g and length 150 cm hangs from a : a uniform rope of mass 110 g and length 150 cm hangs from a ceiling. a find the speed of a transverse wave on the rope

If oakland college outsources maintenance it will be able : oakland college is considering outsourcing grounds maintenance. in this regard oakland has received a bid from highline

Consider two oppositely charged parallel metal plates the : question consider two oppositely charged parallel metal plates. the plates are square with sides l and carry charges q

Jack spends the same amount of money on walnuts priced at : sarah buys x pounds of almonds priced at y dollars per pound. jack spends the same amount of money on walnuts priced

All overtime was worked by the early shift during may shift : woodlands restaurant supply operates in two shifts paying a late-shift premium of 10 percent and an overtime premium of

A parallel-plate capacitor has circular plates of radius 20 : question a parallel-plate capacitor has circular plates of radius 20 cm and a uniform electric field between the

User Account

All Pages