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With an explanation please Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department

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With an explanation please

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: of Services Used Direct Costs Maintenance CafeteriaMachining Assembly Machining $100,000 70,000 40,000 35,000 0.5 0.1 0.3 0.1 0.2 Cafeteria 0.8 Caro estimates that the variable costs in the Maintenance Department total $15,000, and in the Cafeteria variable costs total $16,000. Avoidable fixed costs in the Maintenance Department are $9,000. Required If Caro outsources the Maintenance Department, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) ximum Amount

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