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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing) Management has decided to allocate maintenance costs on the

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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing) Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: University Printers estimates that the variable costs in the Personnel Department total $7,000 and in the Maintenance Department variable costs total $3.000 Avoidable fixed costs in the Personnel Department are $4.000 if university Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.)

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