"It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing financial reports of her company's attempt to offer a reduced-price daycare service to employees. The daycare's financial figures for the year just ended follow. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120,000 Required: 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $6,800. A. Show calculations that support Mires' belief that the daycare center lost almost $40,000. ort your answer
"It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing financial reports of her company's attempt to offer a reduced-price daycare service to employees. The daycare's financial figures for the year just ended follow. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120,000 Required: 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $6,800. A. Show calculations that support Mires' belief that the daycare center lost almost $40,000. ort your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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