Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows:

	Personnel	Legal	Eastern	Western
Employees	0	40	120	40
Hours	10,800	0	5,400	1,800
Department direct costs	$ 300,000	$ 160,000	$ 1,200,000	$ 790,000

Baldwin Enterprises estimates that the cost structure in its operations is as follows:

	Personnel	Legal	Eastern	Western
Variable costs	$180,000	$ 52,000	$ 980,000	$ 571,000
Fixed costs	230,000	130,000	352,000	241,000
Total costs	$ 410,000	$ 182,000	$ 1,332,000	$ 812,000
Avoidable fixed costs	$ 61,000	$ 31,000	$ 260,000	$ 260,000

Required:

1. If Baldwin outsources the Legal Department, what is the maximum it can pay an outside vendor without increasing total costs?
2. If Baldwin outsources the Personnel Department, what is the maximum it can pay an outside vendor without increasing total costs?
3. If Baldwin outsources both the Personnel and the Legal Departments, what is the maximum it can pay an outside vendor without increasing total costs?