Question: Refer to the facts in Exercise 11-22. Warren estimates that the variable costs in the Maintenance Department total $145,000, and in the Cafeteria variable costs

Refer to the facts in Exercise 11-22. Warren estimates that the variable costs in the Maintenance Department total $145,000, and in the Cafeteria variable costs total $160,000. Avoidable fixed costs in the Maintenance Department are $90,000.


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If Warren outsources the Maintenance Department, what is the maximum they can pay an outside vendor without increasing total costs?


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