Manzano Bank has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During November, the following costs and service department usage ratios were recorded:

		Using Department
Supplying
Department		Processing				Administration				Maintenance			Branches				Electronic
Processing			0				50	%			0			10	%			40	%
Administration			0				0				0			60	%			40	%
Maintenance			10	%			20	%			0			20	%			20	%
Direct cost		$	120,000				$750,000				$330,000		$	6,000,000			$	2,250,000

The cost accountant at Manzano Bank estimates that the cost structures in their departments are as follows:

	Processing			Administration			Maintenance			Branches			Electronic
Variable costs	$	80,000		$	240,000		$	180,000		$	2,500,000		$	1,200,000
Fixed costs		40,000			510,000			150,000			3,500,000			1,050,000
Total costs	$	120,000		$	750,000		$	330,000		$	6,000,000		$	2,250,000
Avoidable fixed costs	$	10,000		$	403,000		$	120,000		$	2,112,500		$	910,000

Required:

(a)

If Manzano outsources the Processing Department, what is the maximum they can pay an outside vendor without increasing total costs? Maxmimum Amount: b) If Manzano outsources the Administration Department, what is the maximum they can pay an outside vendor without increasing total costs? Maxmimum Amount: c) If Manzano outsources the maintenance Department, what is the maximum they can pay an outside vendor without increasing total costs?