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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:
The cost accountant at Manzano Bank estimates that the cost structures in their departments are as follows:
If Manzano outsources the Processing Department, what is the maximum they can pay an outside vendor without increasing total costs? (Omit the "$" sign in your response.)
If Manzano outsources the Administration Department, what is the maximum they can pay an outside vendor without increasing total costs? (Omit the "$" sign in your response.)
If Manzano outsources the Maintenance Department, what is the maximum they can pay an outside vendor without increasing total costs? (Omit the "$" sign in your response.)
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