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6 Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following

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6 Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded 40% 10% 20% 50% Direct cost $88,000 $241,000 $4,150,000 $2,250,000 The cost accountant at Great Eastern Credit Union estimates that the cost structures in its departments are as follows: Variable costs Fixed costs Total costs Avoidable fixed costs $60,000 28.000 88.000 $15,000 $160,000 360,000 $520,000 $277,000 $130,000 $1,950,000 $1,350,000 900,000 $241.000 $4.150,000 $2.250,000 S 83,000 640,000 610,000 1.000.2200 000 -e000??520000 Required a. If GECU outsources the Processing Department, what is the maximum it can pay an outside vendor without increasing total costs? b. If GECU outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs? c. If GECU outsources the Maintenance Department, what is the maximum it can pay an outside vendor without increasing total costs

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