Oakland college is considering outsourcing grounds

Reference no: EM13599989

Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $304,160 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 $312,510 as follows:

Salary of three full-time gardeners $197,630
Plant materials 85,090
Fertilizer 7,290
Fuel 8,300
Depreciation of tractor, mowers, and other
miscellaneous equipment 14,200
Total $312,510

If Oakland College outsources maintenance, it will be able to sell equipment for $30,150, and the three gardeners will be laid off.Analyze the one-year financial impact of outsourcing grounds maintenance.

Reference no: EM13599989

Questions Cloud

Transco plans on purchasing a bus for 75000 that will have : transco plans on purchasing a bus for 75000 that will have a capacity of 40 passengers. as an alternative a larger bus

At dalton playground equipment the powder-coating process : at dalton playground equipment the powder-coating process is a bottleneck. typically it takes approximately two hours

What is the present equivalent of a year-end series of : what is the present equivalent of a year-end series of receipts starting with a first-year base of 1 million and

Calculate the net realizable value of accounts receivable : a portion of the current assets section of the december 31 2010 balance sheet for gibbs co. is presented here accounts

Oakland college is considering outsourcing grounds : oakland college is considering outsourcing grounds maintenance. in this regard oakland has received a bid from highline

At the beginging of 2010 ez tech company accounts : at the beginging of 2010 ez tech company accounts receivable balance was 140000 and the balance in allowance for

Hanover toy store has budgeted sales of 48000 for its : hanover toy store has budgeted sales of 48000 for its electronics department in november. management wants to have

Helix corporation produces prefabricated flooring in a : helix corporation produces prefabricated flooring in a series of steps carried out in production departments. all of

If a transfer price of 105 per unit is established and : materials used by the industrial divison of crow manufacturing are currently purchased from outside suppliers at a cost

User Account

All Pages