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Business, 20.12.2019 03:31 maqle

Boise, a division of price 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 $89,000 and $34,000, respectively, in addition to $27,000 of corporate administrative overhead allocated from price. if boise were to use the outside consultant, fixed operating costs would be reduced by 60%. the irrelevant costs in boise’s outsourcing decision total:

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