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. Administration Accounting 25 Employees Transactions Department direct costs Domestic 15 10,000 $158,000 International 60 40,000 $605,000 50,000 $65,000 $20,500 BluStar estimates that the cost structure in its operations is as follows. Administration $ 23,000 42,000 Variable costs Fixed costs Total costs Avoidable fixed costs Accounting $ 6,500 14,000 $20,500 $ 4,100 Domestic $114,500 43,500 $158,000 $ 21,500 International $433,000 172,000 $605,000 $114,000 $ 65,000 $ 11,000 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? 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. Administration Accounting 25 Employees Transactions Department direct costs Domestic 15 10,000 $158,000 International 60 40,000 $605,000 50,000 $65,000 $20,500 BluStar estimates that the cost structure in its operations is as follows. Administration $ 23,000 42,000 Variable costs Fixed costs Total costs Avoidable fixed costs Accounting $ 6,500 14,000 $20,500 $ 4,100 Domestic $114,500 43,500 $158,000 $ 21,500 International $433,000 172,000 $605,000 $114,000 $ 65,000 $ 11,000 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