BluStar estimates that the cost structure in its operations is as follows. Administration 22,500 44,500 67,000...
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BluStar estimates that the cost structure in its operations is as follows. Administration 22,500 44,500 67,000 8,500 Variable costs Fixed costs Total costs Avoidable fixed costs $ $ $ Accounting $ 5,600 18,400 $24,000 $ 3,700 Domestic $110,000 48,500 $158,500 $ 19,500 International $435,000 159,000 $594,000 $112,000 Required: a. If BluStar outsources the Administration Department, what is the maximum It can pay an outside vendor without increasing total costs? Complete this question by entering your answers in the tabs below. Required A Required B Required C If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount Complete this question by entering your answers in the tabs below. Required A Required B Required C If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount < Required A Required A Required B Required C Required C > If BluStar outsources both the Administration and the Accounting Departments, what is the maximum it can pay an outside vendor without increasing total costs? Maximum amount < Required B Required C > BluStar estimates that the cost structure in its operations is as follows. Administration 22,500 44,500 67,000 8,500 Variable costs Fixed costs Total costs Avoidable fixed costs $ $ $ Accounting $ 5,600 18,400 $24,000 $ 3,700 Domestic $110,000 48,500 $158,500 $ 19,500 International $435,000 159,000 $594,000 $112,000 Required: a. If BluStar outsources the Administration Department, what is the maximum It can pay an outside vendor without increasing total costs? Complete this question by entering your answers in the tabs below. Required A Required B Required C If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount Complete this question by entering your answers in the tabs below. Required A Required B Required C If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount < Required A Required A Required B Required C Required C > If BluStar outsources both the Administration and the Accounting Departments, what is the maximum it can pay an outside vendor without increasing total costs? Maximum amount < Required B Required C >
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1 Maximum admin cost that can be paid is 67000 8500 58500 We subtract... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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