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It's All One Big Question. Please Answer All Parts At Your Earliest Convinience. Thank You. BluStar Company has two service departments, Administration and Accounting, and

It's All One Big Question. Please Answer All Parts At Your Earliest Convinience. Thank You.

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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. Employees Transactions Department direct costs Administration Accounting Domestic 25 15 50,000 10,000 $50,000 $28,000 $153,250 International 60 40,000 $600,000 BluStar estimates that the cost structure in its operations is as follows. Variable costs Fixed costs Total costs Avoidable fixed costs Administration Accounting $ 27,500 $ 6,700 22,500 21,300 $50,000 $28,000 $ 8,250 $ 5,000 Domestic $110,000 43,250 $153,250 International $438,000 162,000 $600,000 $112,500 $ 22,500 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? Complete this question by entering your answers in the tabs below. Required a Required B Required 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 Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required 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 Complete this question by entering your answers in the tabs below. Required A Required B Required 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

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