Using a Responsibility Income Statement

question 72

Essay

Using a responsibility income statement
Shown below is the current monthly income statement of Metro Video,by profit centers:
METRO VIDEO
Income Statement by Profit Centers
For the Month Ended April 30,20__
On the basis of this information,compute the increase in monthly income from operations that may be expected to result from each of the following actions:
(a)Spending $5,000 per month in advertising is expected to increase sales in the Equipment Sales Department by 35%.$________
(b)Closing the Equipment Sales Department and allowing the Video Rentals Department to expand is expected to increase the revenue of the Video Rentals Department by $105,000 per month.This action also is expected to increase fixed costs traceable to the Video Rentals Department by $40,000 per month.$________

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Definitions:

Primary Condition

The main or most significant illness or disorder diagnosed in a patient, often the cause for seeking medical attention.

Patient Care

The services provided by health professionals to patients with the aim of improving or maintaining health, preventing illness, and treating conditions.

Outpatient Coding

The process of coding the diagnosis, treatment, and procedures for patients who receive services without being admitted to a hospital.

Unclear Diagnosis

A situation where medical test results and symptoms do not clearly indicate the exact nature or cause of a patient’s illness.