Problem related to contract

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Reference no: EM13129762

You are a water superintendent. one of your workers performs preventive maintenance(PM)in water meters. the worker spends three-fourth of his time on PM. his annual salary is 22,000. the city pays 7.65%, which is the employer's share of the social security, and 15% for hospitalization and pensions. PM supply costs are 2,500. the worker travels 10,000 miles while maintaining meters, for which the garage charges 20 cents per mile. overhead costs applied to direct costs are 30%. a total of 3,500 meters were maintained. a private firm offers to do your PM for $10 a meter. Given the following information, should you contract out?

Reference no: EM13129762

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