Question: 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

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 

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 >

Step by Step Solution

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

1 Maximum admin cost that can be paid is 67000 8500 58500 We subtract... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!