Refer to the facts in Exercise 11-22. Warren estimates that the variable costs in the Maintenance Department

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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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Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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Question Posted: Apr 26, 2012 02:40 AM

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Refer to the facts in Exercise 11-22. Warren estimates that the variable costs in the Maintenance Department

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Fundamentals of Cost Accounting

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