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Find irrelevant cost in maddox outsourcing decision total is

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Maddox, a division of Stanley Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $98,000 and $43,000, respectively, in addition to $36,000 of corporate administrative overhead allocated from Stanley.

Question 1: If Maddox were to use the outside consultant, fixed operating costs would be reduced by 60%. The irrelevant costs in Maddox's outsourcing decision total is?

Reference no: EM132461128

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