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Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation $($BSC$).$ The

company provides check processing services for small banks. The banks send checks presented for deposit or payment to BSC$,$ which

records the data on each check in a computerized database. BSC then sends the data electronically to the nearest Federal Reserve Bank

check$-$clearing center, where the appropriate transfers of funds are made between banks. The Rocky Mountain Region has three check

processing centers, which are located in Billings, Montana; Great Falls, Montana; and Clayton, Idaho. Prior to her promotion to vice

president, Ms$.$ Romeros had been the manager of a check processing center in New Jersey.

After assuming her new position, Ms$.$ Romeros requested a complete financial report for the just$-$ended fiscal year from the region's

controller, John Littlebear. Ms$.$ Romeros specified the financial report should follow the standardized format required by corporate

headquarters for all regional performance reports. That report follows:

Upon seeing this report, Ms$.$ Romeros summoned John Littlebear for an explanation.

Required:

$1)$ From the standpoint of the company as a whole, what is the financial advantage $($disadvantage$)$ of closing the Clayton processing center

and redistributing its work to other processing centers in the region? Explain.

$2)$ Why might it be in Haley Romeros's self$-$interest to shut down the Clayton facility? Do you think Haley Romeros is conducting herself in

an ethical fashion? Explain.

$3)$ What influence should the depreciation on the facilities at

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