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Business, 23.03.2020 22:58 macp98463oz47dl

Jenson College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $48 per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services:Identify relevant costs in outsourcing decision. Cost per hour of service: Cleaning supplies $4 Direct labour costs $30 Variable overhead $1Total hours of housekeeping services per year 3,000Total fixed overhead $50,000Determine whether Jenson College should outsource housekeeping, assuming that 50% of fixed costs can be eliminated if the service is outsourced. Provide calculations to support your answer.$(14,000)b. At what level of service (in hours) would Jenson generally be indifferent between providing housekeeping services or outsourcing them, assuming that 50% of fixed costs can be eliminated?1,923 hoursc. Describe two qualitative factors that might affect this outsourcing decision.

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