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Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department

Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow:

Department Direct Costs Proportion of Services Used by
Repair Quality Control Fabricating Finishing
Fabricating $ 142,600
Finishing 102,200
Repair 43,800 0 0.3 0.6 0.1
Quality Control 81,800 0.3 0 0.2 0.5

Mack Precision Tool and Die estimates that the variable costs in the Repair Department total $15,225, and in Quality Control variable costs total $39,200. Avoidable fixed costs in the Repair Department are $12,400.

Required:

If Mack Precision Tool and Die outsources the Repair Department, what is the maximum it can pay an outside vendor without increasing total costs?

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