Refer to the facts in Exercise 11-24. University Printers estimates that the variable costs in the Personnel Department total $20,000 and in the Maintenance Department variable costs total $8,750. Avoidable fixed costs in the Personnel Department are $6,000.
If Warren outsources the Personnel Department functions, what is the maximum they can pay an outside vendor without increasing total costs?
This question was answered on: Jul 11, 2017
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