Catering business it currently serves two institutions

Reference no: EM131490508

Guanabacoa is a catering business. It currently serves two institutions; Oso Blanco and Santa Marta. The following information is about Guanabacoa's revenues and costs for the previous year. Use differential analysis to determine if the Oso Blanco account should be discontinued or not:

Oso Blanco Santa Marta

Revenue $210 $480

Operating costs

Cost of service (variable) 212 250

Fixed costs 10 25

Total operating costs $222 $275

Operating Profits $(12) $205

Reference no: EM131490508

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