Computer Intelligence, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst in the accounting department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. Carol assembled the following data from the two service departments, information systems and Facilities Maintenance.
				Service Departments				Production Departments
				Info. Systems		Facilities Maintenance		Computer programming		Info. Systems consulting		Software training	total
	Budgeted overhead			$76,000		$60,909		$151,000		$208,000		$135,600	631509
	Info. Systems (hours)*			20		200		1,280		620		1,100	3220
	Facilities Maintenance (sq. ft.)**			200		15		420		630		830	2095
	* Allocated on the basis of hours of computer usage. ** Allocated on the basis of floor space.
Required:
Using as the application base computer usage time for the information systems department and square feet of floor space for the Facilities Maintenance department, apply overhead from these service departments to the production departments, using the reciprocal method.
			Support Departments				Producing Departments
			Info. Systems	Facilities Maintenance			Computer programming	Info. Systems consulting	Software training		Total
		[A]	0.00621118	0.095465394			?	?
			0.062111801	0.007159905
							0.397515528	0.192546584	0.341614907
		[I]	?	?			0.200477327	0.30071599	0.396181384
			?	?
							?	?	?		?
		[C]	$76,000				$151,000	$208,000	$135,600		$494,600
			$60,909				151000	208000	135600		494600
		[I-A]	0.00621118	0.095465394
			0.062111801	0.007159905
		[I-A] inverse	?	?
			?	?
		[B]
			?	?
			?	?
An outsourcer has offered to perform the Facilities Maintenance service for								$66,000
Should Computer Intelligence accept the offer to outsource the Facilities Maintenance department?								?
At what dollar amount would you be indifferent between accepting/not accepting the outsourcer's proposal?								?