Eight Flags amusements provided the following Maintenance Department cost information and visitor count over the past 3 years.

Visitors (in 000s) Cost (in $000)

1,825 $2925

2,007 3,225

2,375 3,750

Management is considering eliminating the Maintenance Department and contracting to have the work done, because of a concern about fixed costs. The maintenance manager tells you the managerial accountant that the (2375, 3750) data point is an outlier and should be eliminated from the analysis.

By eliminating it, what would be the effect on the fixed portion of the cost? Would it be a breach of the code of ethics to do so? How would it reflect on you, the managerial accountant?