BluStar estimates that the cost structure in its operations is as follows:

  

      

  

Required      

a. If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs?
 
b. If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs?
 
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?

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Administration Accounting Domestic International $ 36,000 108,000 Variable costs . $678,000 258,000 $2,562,000 1,038,000 $150,000 ... Fixed costs . Total costs... Avoidable fixed costs... 210,000 $3,600,000 $ 675,000 $360,000 $144,000 $936,000 $ 60,000 $ 18,000 $120,000 Administration Accounting Domestic International $ 36,000 108,000 Variable costs . $678,000 258,000 $2,562,000 1,038,000 $150,000 ... Fixed costs . Total costs... Avoidable fixed costs... 210,000 $3,600,000 $ 675,000 $360,000 $144,000 $936,000 $ 60,000 $ 18,000 $120,000