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If Elkhart were to discontinue production, fixed manufacturing costs would be reduced by 70% The relevant cost of deciding whether the division should purchase the

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If Elkhart were to discontinue production, fixed manufacturing costs would be reduced by 70% The relevant cost of deciding whether the division should purchase the product from an outside supplier is: A. $540,000. B. $594,000. C. $666,000. D. $720,000. E. $726,000. 9. Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable an fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporat administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise's outsourcing decision total: A. $17,500. B. $18,000. C. $25,000. D. $25,500. E. None of the answers is correct

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