Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 22

Jamison Health Care is trying to decide if it should eliminate its orthopedic care division. In the last year, the orthopedic division had a contribution margin of $100,000 and allocated overhead costs of $200,000, of which $90,000 could be eliminated if the division is dropped. Should Jamison keep the division