Solution-Determine what is the maximum can pay an outside

Determine what is the maximum can pay an outside vendor

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Reference no: EM132649906

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.

Required:

Question a. If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs?

Question b. If BluStar outsources the Accounting Department, what is the maximum it can pay an outside vendor without increasing total costs?

Question 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?

Reference no: EM132649906

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Determine what is the maximum can pay an outside vendor

Reference no: EM132649906

Reference no: EM132649906

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