Laurel Corporation has its own cafeteria with the following annual costs: Of the overhead, $25,000 is the salary of the cafeteria supervisor.The remainder is variable overhead. Assuming the cafeteria supervisor will remain and the Laurel will continue to pay his/her salary, the maximum cost Laurel will be willing to pay an outside firm to service the cafeteria is A. $219,000. B. $285,000. C. $260,000. D. $175,000.
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