Question
$1.00 accounting question
- From Business: Accounting
- Closed, but you can still post tutorials
- Due on Nov. 18, 2011
- Asked on Nov. 18, 2011 at 10:49:03AM
Q:
Due to Medicare reimbursement cuts, Loving Home Care is considering shutting down it’s 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-- |
||||||
| Nursing | CNA's | Total | ||||
| Revenues | $3,500,000 | $1000,000 | $4,500,000 | |||
| Variable Costs | 2,000,000 | 700,000 | 2,700,000 | |||
| Fixed Costs | 400,000 | 400,000 | 800,000 | |||
| 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.
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conclusion
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- Posted on Nov. 18, 2011 at 11:10:01AM
A:
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Attachments:
Book3.xlsx (9K)
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Attachments:
Book3.xlsx (9K)
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accounting (Graded A+)
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- Posted on Nov. 18, 2011 at 11:32:46AM
A:
Preview: ... for ...
The full tutorial is about 3 words long plus attachments.
mitchn62.docx (10K)