35 Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow. ed out of 2.5 question Manufacturing costs: Variable Fixed Allocated corporate administrative cost $540,000 180,000 60,000 If Elkhart were to discontinue production, tixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is: Select one: O a $540,000 b. $594,000 Oe $666,000 Od $720,000 e. $726,000 en 36 t ed Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. It Boise were to use the outside consultant fixed operating costs would be reduced by 70%. The irrelevant costs in Boise's outsourcing decision total out of 2.5 question Select one: O a $17.500 Ob $18,000 O $25,000 O d. $25,500 e. None of the answers is correct