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Fairview Hospitals has three divisions (service lines). They are General Clinics, Specialty Clinics and Pharmacy Services....

  1. Fairview Hospitals has three divisions (service lines). They are General Clinics, Specialty Clinics and Pharmacy Services. The sales for each service line were $1,400,000 General Data, $600,000 Specialty Clinics, and $420,000 Pharmacy Services while the variable expenses for each service line (division) were $520,000, $360,000 and $280,000 respectively. The related service line (division) discretionary and committed fixed expenses are presented below:

Fixed expense

General Clinics

Specialty Clinics

Pharmacy Services

Discretionary

$320,000

$140,000

$160,000

Committed

$190,000

$280,000

$130,000

Would you recommend eliminating any of the divisions? Support your recommendation with calculations

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