An insurance company has the following profitability analysis of its services: 

The fixed costs are distributed equally among the services and are not avoidable if one of the services is dropped. What is the profitability of the remaining services if all services with losses are dropped?

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Revenues Commissions Payments Fixed costs Profit Life Insurance 5,000,000 (1,000,000) (3,000,000) (500,000) 500,000 Auto Insurance 10,000,000 (2,000,000) (7,300,000) (500,000) 200,000 Home Insurance 3,000,000 (600,000) (2,000,000) (500,000) (100,000)