Attached is data on the transactions (samples) conducted by Martin Diagnostics at their multiple locations for the first six months of 2019. Martin Diagnosfics has main offices in Florence and Inglewood, branch offices in Tampa and Fresno, and a satellite office in Tullahoma. Administrative costs are $25,000 per month for main offices, $9,000 per month for branch offices, and $2,750 per month for satellite offices. Invoicing and collection costs $380,000 per year, and Martin has the capacity to process 25,000 invoices per year. Variable processing costs are $2.50 per transaction at main offices, $4.00 per transaction at branch offices, and $7.00 per transaction at satellite offices. In addition, Martin Diagnostics licenses the Fleming technology for $480,000 per year and has the capacity to perform 12,000 tests using Fleming technology each year. The technology used to perform Minimally Invasive tests costs $250,000 per year. California taxes diagnostic services at 5% of pretax incomennhile Tennessee and Florida have no income tax on diagnostic services. You have several assignments: A. Create an income statement, by state, assigning costs to offices and transactions as appropriate. B. Evaluate the profitability of each office (test center), using an absorption costing approach. Any recommendations? C. Evaluate the profitability of each procedure, using an absorption costing approach. Any recommendations? D. Evaluate the profitability of each client, using a variable costing approach. Any recommendations? E. If tests are performed at a branch office or main office for samples collected at a satellite location, there would be an additional \$20 per transaction transportation costs. Would you recommend closing satellite offices? Attached is data on the transactions (samples) conducted by Martin Diagnostics at their multiple locations for the first six months of 2019. Martin Diagnosfics has main offices in Florence and Inglewood, branch offices in Tampa and Fresno, and a satellite office in Tullahoma. Administrative costs are $25,000 per month for main offices, $9,000 per month for branch offices, and $2,750 per month for satellite offices. Invoicing and collection costs $380,000 per year, and Martin has the capacity to process 25,000 invoices per year. Variable processing costs are $2.50 per transaction at main offices, $4.00 per transaction at branch offices, and $7.00 per transaction at satellite offices. In addition, Martin Diagnostics licenses the Fleming technology for $480,000 per year and has the capacity to perform 12,000 tests using Fleming technology each year. The technology used to perform Minimally Invasive tests costs $250,000 per year. California taxes diagnostic services at 5% of pretax incomennhile Tennessee and Florida have no income tax on diagnostic services. You have several assignments: A. Create an income statement, by state, assigning costs to offices and transactions as appropriate. B. Evaluate the profitability of each office (test center), using an absorption costing approach. Any recommendations? C. Evaluate the profitability of each procedure, using an absorption costing approach. Any recommendations? D. Evaluate the profitability of each client, using a variable costing approach. Any recommendations? E. If tests are performed at a branch office or main office for samples collected at a satellite location, there would be an additional \$20 per transaction transportation costs. Would you recommend closing satellite offices