A Company Expects Its Three Departments to Yield the Following

question 96

Essay

A company expects its three departments to yield the following income for next year:
$\begin{array}{lrrr}& \text { Dept. X } & \text { Dept. Y } & \text { Dept. Z } \\\text { Sales } & \$ 94,000 & \$ 15,000 & \$ 70,000 \\\text { Expenses } \\\text { Avoidable } & 71,000 & 2,000 & 52,000 \\\text { Unavoidable } & 4,000 & 7,000 & 20,000 \\\hline \text { Total expenses } & 75,000 & 9,000 & 72,000 \\\hline\text { Net income(loss) } & \underline {\$ 19,000} & \underline {\$ 6,000} &\underline { \$(2,000)}\end{array}$ Required: Compute the following independent calculations:
a.The effect on total company income if Dept.X is eliminated.
b.The effect on total company income if Dept.Y is eliminated.
c.The effect on total company income if Dept.Z is eliminated.
d.Should any of these departments be eliminated? Why of why not?

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Definitions:

Policy Advocacy

The active, intentional efforts to influence policy decisions and political processes to achieve specific outcomes.

Powerless Groups

Communities or demographic groups that lack political or economic power and representation in society.

Clinicians

Healthcare professionals involved in the direct care and treatment of patients.

Medicaid

A government-funded program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.