$1.00 accounting question
Due to Medicare reimbursement cuts, Loving Home Care is considering shutting down itís Certified Nursing Assistant Division. Fixed costs will have to be transferred to the Nursing Division if the CNA division is discontinued. Currently, the fixed costs are shared equally. Using the Income Statement below, make a recommendation to the president regarding this decision.
|Loving Home Care
Condensed Income Statement
For the Year Ended December 31, 20--
|Net Income from operations||$1,100,000||†||($100,000)||†||$1000,000||†|
-Select-Keep for nowDiscontinueItem 1 as operating income would -Select-increasedecreaseItem 2 by $ if the CNA division were -Select-discontinuedcontinuedItem 4.
- This tutorial was purchased 1 time and rated No Rating by students like you.
- Posted on Nov. 18, 2011 at 11:10:01AM
- This tutorial hasn't been purchased yet.
- Posted on Nov. 18, 2011 at 11:32:46AM
mitchn62.docx (10K) (Preview)