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Dade Corporation currently maintains its own printing department. The annual costs of running this department are as follows: Variable costs $30,000 Fixed costs 60.000 $90,000

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Dade Corporation currently maintains its own printing department. The annual costs of running this department are as follows: Variable costs $30,000 Fixed costs 60.000 $90,000 Total Hialeah Copy Service has offered to provide Dade with all of its printing needs at a total annual cost of $68,000. If Dade went with this offer, they would close down their printing department. Except for 30% of the fixed costs, all of the annual printing department costs above can be avoided if it was closed down Based on this information, would Dade be better off to keep its printing department or to shut it down and take Hialeah's offer and by how much? 40,000 better off to go with Hialeah 5,000 better off to keep the department 22,000 better off to go with Hialeah 20,000 better off to keep the department

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