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Easier to read format attached. AP7-2 (a,b)...




Easier to read format attached. AP7-2 (a,b) Incremental Analysis of Outsourcing Decision [LO 1, 2, 4] Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $308,700 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 $317,690 as follows: Salary of three full-time gardeners $204,030 Plant materials 81,460 Fertilizer 8,880 Fuel 8,740 Depreciation of tractor, mowers, and other miscellaneous equipment 14,580 Total $317,690 If Oakland College outsources maintenance, it will be able to sell equipment for $34,300, and the three gardeners will be laid off. Incorrect. Analyze the one-year financial impact of outsourcing grounds maintenance. $ Incorrect. How will savings in the second year differ from those in year 1? $


Paper#4910 | Written in 18-Jul-2015

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