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BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees,

BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows.

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Administration Accounting 25 Employees Transactions Department direct costs Domestic 15 10,000 $ 158, eee International 6e 4e, eee $600, eee 5e,eee $ 55, eee $ 25, eee BluStar estimates that the cost structure in its operations is as follows. Variable costs Fixed costs Total costs Avoidable fixed costs Administration $ 22,eee 33,eee $ 55,00 $ 9,25e Accounting $ 6,200 18,888 $ 25,000 $ 4,900 Domestic $114,5ee 43,500 $ 158, eee $ 19,000 International $438, eee 162, eee $600,00 $113,000 Required: a. If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without Increasing total costs? b. If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs? c. If BluStar outsources both the Administration and the Accounting Departments, what is the maximum it can pay an outside vendor without increasing total costs? Complete this question by entering your answers in the tabs below. Required A Required B Required If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum amount If BluStar outsources both the Administration and the Accounting Departments, what is the maximum it can pay an outside vendor without increasing total costs? Maximum amount

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