The Michael Jackson Center for Cosmetic Surgery is currently offering three types of services: Br...
The Michael Jackson Center for Cosmetic Surgery is currently offering three types of services: Brow Lifts, Gender Reassignment and Rhinoplasty. All common fixed costs are unavoidable, and sales of Brow Lifts and Gender Reassignment services would not be affected if they stopped offering Rhinoplasty GENDER REASSIGNMENT BROW LIFTS RHINOPLASTY TOTAL SALES REVENUE VARIABLE COSTS CONTRIBUTION MARGIN DIRECT FIXED COSTS SEGMENT MARGIN COMMON FIXED COSTS NET OPERATING INCOME $ 1,100,000 $ 400,000 $ 700,000 $ 80,000 $ $620,000 $ $264,000 $ 356,000 $ 900,000 $ 500,000 2,500,000 468,000 400,000$1,268,000 432,000 $ 100,000 1,232,000 110,000 30,000 $ 322,000 $70,000 $ 1,012,000 216,000 $120,000 $ 106,000 (50,000 $412,000 220,000 600,000 What would their net operating income be if they stopped offering Rhinoplasty? General principle aside, should they stop offering it?
The Michael Jackson Center for Cosmetic Surgery is currently offering three types of services: Brow Lifts, Gender Reassignment and Rhinoplasty. All common fixed costs are unavoidable, and sales of Brow Lifts and Gender Reassignment services would not be affected if they stopped offering Rhinoplasty GENDER REASSIGNMENT BROW LIFTS RHINOPLASTY TOTAL SALES REVENUE VARIABLE COSTS CONTRIBUTION MARGIN DIRECT FIXED COSTS SEGMENT MARGIN COMMON FIXED COSTS NET OPERATING INCOME $ 1,100,000 $ 400,000 $ 700,000 $ 80,000 $ $620,000 $ $264,000 $ 356,000 $ 900,000 $ 500,000 2,500,000 468,000 400,000$1,268,000 432,000 $ 100,000 1,232,000 110,000 30,000 $ 322,000 $70,000 $ 1,012,000 216,000 $120,000 $ 106,000 (50,000 $412,000 220,000 600,000 What would their net operating income be if they stopped offering Rhinoplasty? General principle aside, should they stop offering it?