Refer to the facts in Problem 11-46. GB estimates that the cost structure in the their operations is as follows:

Required
a. If GB outsources the Administration Department, what is the maximum they can pay an outside vendor without increasing total costs?
b. If GB outsources the Accounting Department, what is the maximum they can pay an outside vendor without increasing total costs?
c. If GB outsources both the Administration and the Accounting Departments, what is the maximum they can pay an outside vendor without increasing totalcosts?

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Administration AccountingEast West $9,000$169,500 $640,500 64,500 259,500 $234,000 900,000 $30,000 $168,750 Fixed costs.. 52,500 27000 0,00 6 00 $234000 900 000 $15,000 Avoidable fixed costs $4,500