Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. french quarter medical clinic exists of two segmen

French Quarter medical clinic exists of two segments, primary care and urgent care. Below the...

60.1K

Verified Solution

Question

Accounting

image
French Quarter medical clinic exists of two segments, primary care and urgent care. Below the forecasted contribution format income statement for the upcoming period. Sales Less: Total Variable Costs Contribution Margin Less: Total Fixed Costs Net Income $ $ $ $ $ Total Primary Care Urgent Care 8,000,000 $ 2,000,000 $ 6,000,000 1,000,000 $ 300,000 $ 700,000 7,000,000 $ 1,700,000 $ 5,300,000 6,000,000 $ 2,000,000 $ 4,000,000 1,000,000 $ (300,000 $ 1,300,000 Top management is considering closing the primary care department. The company estimates that fixed costs would decrease by $650,000 if the primary care department was eliminated and the company estimates that urgent care sales will decrease by 20%. What would the clinic's total profit if the primary care segment was eliminated

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students