From textbook, Managerial Accounting, 8edition, Hartgraves and Morse. ISBN 978-1-61853-235-0, Problem p4-34

Q: Westview Eye clinic primarily performs three medical procedures: cataract removal, corneal implants and laser keratotomy. At the end of the 1st Quarter, Dr. R, president, expressed concern about the cataract sector because it had a reported loss of $100,000. he rationalized that "since the cataract market is losing $100,000 and the overall practice is making $330,000, if eleminating cataract service , the total profits would increase to $430,000."

A. Is Dr. R's analysis correct?

B. Will total profits increase if the cataract section is dropped?

C. Is it possible that total profits will decline?