An Insurance Company Has the Following Profitability Analysis of Its

Essay

An insurance company has the following profitability analysis of its services: $$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { Life } \\\text { Insurance }\end{array} & \begin{array} { r } \text { Auto } \\\text { Insurance }\end{array} & \begin{array} { r } \text { Home } \\\text { Insurance }\end{array} \\\hline \text { Revenues } & \$ 5,000,000 & \$ 10,000,000 & \$ 3,000,000 \\\hline \text { Commissions } & ( 1,000,000 ) & ( 2,000,000 ) & ( 600,000 ) \\\hline \text { Payments } & ( 3,000,000 ) & ( 7,300,000 ) & ( 2,000,000 ) \\\hline \text { Common } & ( 500,000 ) & ( 500,000 ) & ( 500,000 ) \\ \text { Costs } & & & \\\hline \text { Profit } & \$ 500,000 & \$ 200,000 & ( \$ 100,000 ) \\\hline\end{array}$$ The common costs are fixed, are distributed equally among the services, and are not avoidable if one of the services is dropped.
Required:
What is the profitability of the remaining services if all services with losses are dropped?