Reference no: EM132526403
Golden Age operates three retirement homes and expects the following results next year:
Oaks Pines Elms Total
Revenue $100,000 $150,000 $180,000 $430,000
Variable Costs 45,000 60,000 60,000 165,000
Contribution Margin 55,000 90,000 120,000 $265,000
Fixed Costs $60,000 $40,000 $60,000 $160,000
Income [$5,000] $50,000 $60,000 $105,000
Suppose $25,000 of the ?xed costs are avoidable.
Question 1: What will be the effect on total profit, if The Oaks closes down?
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