Clayton has to go. At the next corporate board meeting, I am going to recommend the

Clayton facility be closed.

Required:

1. From the standpoint of the company as a whole, what is the financial advantage

(disadvantage) of closing the Clayton processing center and redistributing its work to

other processing centers in the region? Explain.

2. Why might it be in Haley Romeros's self-interest to shut down the Clayton facility? Do

you think Haley Romeros is conducting herself in an ethical fashion? Explain.

3. What influence should the depreciation on the facilities at Clayton have on prices charged

by Clayton for its services? Explain