Customer profitability analysis. How Clean, a janitorial service, has two clients, Greeley Hospital and Greeley Junior High School. The following is information about How Clean's revenues and costs (in thousands) by customer for the previous year.

This analysis apparently shows that Greeley Hospital is not profitable for How Clean.
Use differential analysis to determine whether How Clean should discontinue the hospital account.

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Revenues (fees charged) Operating costs Cost of services (variable) Salaries, rent, and general administration (fixed) Total operating costs Operating profits Greeley Hospital Greeley Junior High Total $920 $1,400 $2,320 $848 $1.220 $2.068 80 120 200 $928 $1,340 $2,268 $ (8) $ 60 52