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:

	Admin	Accounting	Domestic	International
Employees	0	25	15	60
Transactions	50000	0	10000	40000
Department Direct Costs	60000	27000	160000	606000

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

	Admin	Accounting	Domestic	International
Variable Costs	22500	5400	113500	437000
Fixed Costs	37500	21600	46500	169000
Total Costs	60000	27000	160000	606000
Avoidable Fixed Costs	11000	3800	21500	113500

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:

b. 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:

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?

Maximum Amount: