7. "It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing financial reports of her company's attempt to offer a reduced-price daycare service to employees. The daycare's financial figures for the year just ended follow. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120,000 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $6,800. Required: A. Show calculations that support Mires' belief that the daycare center lost almost $40,000 (4 points) B. Should the center be closed? Show calculations to support your answer (4 points) C. What problem might the company experience if the center is closed? (2 points)