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Business, 10.12.2019 02:31 GILLIG6003

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 $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from price. if boise were to use the outside consultant, fixed operating costs would be reduced by 70%. the irrelevant costs in boise’s outsourcing decision total:

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