Does anyone know how it handles audio if a meeting consists of:

10 people in a room using one laptop plus a single microphone and camera with up to another 10 individual remote participants?

We always have problems with audio getting cut off and need a free or cheap solution that does not use a half-duplex service.

We do not wish to sign up to Google Apps for Business in order to use Hangouts. We are subscribed to Office 365.