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Allina Health has three divisions ( service lines ) . They are General Clinics, Specialty Clinics and Pharmacy Services. The sales for each service line

Allina Health has three divisions (service lines).They are General Clinics, Specialty Clinics and Pharmacy Services.
The sales for each service line were:
$1,600,000 General Clinics
$600,000 Specialty Clinics
$420,000 Pharmacy Services
While the variable expenses for each service line (division) were respectively:
$520,000
$360,000
$280,000
The related service line (division) advertising and supervisory costs are:
$320,000 for General Clinics
$140,000 for Specialty Clinics
$130,000 for Pharmacy Services.
The related property taxes and depreciation costs are
$190,000 for General Clinics
$280,000 for Specialty Clinics
$160,000 for Pharmacy Services
1. Calculate the net income of each division and the business in total. Show your work and computations.
2. Would you recommend eliminating any of the divisions? Support your recommendation with calculations.

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