Refer to the facts in Problem 11-46. The cost accountant at Manzano Bank estimates that the cost structures in their departments are as follows:

a. If Manzano outsources the Processing Department, what is the maximum they can pay an outside vendor without increasing total costs?
b. If Manzano outsources the Administration Department, what is the maximum they can pay an outside vendor without increasing total costs?
c. If Manzano outsources the Maintenance Department, what is the maximum they can pay an outside vendor without increasing totalcosts?

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Processing Administration Maintenance Branches Electronio Variable costs. Fixed costs. S 80,000 $240,000 $180,000 $2,500,000 $1,200,000 40,000 510,000 150,000 3,500,000 1,050,000 $120,000 $750,000 $330,000 $6,000,000 $2,250,000 1o6 Avoidable fixed oosts $ 10,000 $403,000 $120,000 $2,112,500 S 910,000