Refer to the facts in Problem 11-42. GB estimates that the cost structure in the their operations is as follows:

Required
a. If GB outsources the Administration Department, what is the maximum they can pay an outside vendor without increasing total costs?
b. If GB outsources the Accounting Department, what is the maximum they can pay an outside vendor without increasing total costs?
c. If GB outsources both the Administration and the Accounting Departments, what is the maximum they can pay an outside vendor without increasing total costs?

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Administration $25,000 35.000 $60,000 $10,000 Accounting $6,000 18,000 $24,000 $3,000 East $113,000 $156,000 $20,000 West $427,000 173,000 $600,000 $112,500 Variable costs . .. Fixed costs.. 43,000 Avoidable fixed costs