i just post the data by it self che the last pictures i posted it at the bottom. alls i know it blurry at the top but dont worry about thta just check the last one i just posted for the forth time
George Haley had just been appointed vice president of the division of the Bank Services Corporation of his region (Rocky Mountain). The company provides check processing services for small banks. This includes sending checks for deposit or payment to Bank Services Corporation. They are responsible for recording the data in their database which is then sent electronically to the Federal Reserve check-clearing center. The Rocky Mountain Region has 3 processing center: Billings; Great Falls; & Clayton. He is new to his position so he asked the controller (Sam Moss), to provide him with the most current regional performance report. Bank Services Corporation (BSC) Rocky Mountain Region Financial Performance Check Processing Centers Total Billings Great Falls Clayton Sales $50,000,000 $20,000,000 S 18,000,000 $12,000,000 Operating expenses Direct labor 32,000,000 12.500.000 1.000.000 8.500.000 Variable overhead 850.000 350,000 310,000 190.000 Equipment depreciation 3.900.000 1.300.000 1.400,000 1.200,000 Facility expense " 2.800,000 900.000 500.000 1.100.000 Local adeninistrative expense 450,000 140.000 160.000 150,000 Regional administrative expense! 1.500.000 600,000 540,000 360,000 Corporate administrative expense 4,750,000 1.900,000 1.710.000 1.140.000 Total operating expense 46.250.000 17.690.000 15,920.000 12.640,000 Net operating income (low) $ 3.750,000 $2,310.000 $ 2.080.000 $ (640,000) After viewing the report here are the questions George Haley asked the controller. Haley: What's the story behind Clayton's loss? Moss: Clayton lost a huge contract, so we had to lay off employees, but we were stuck with the After viewing the report here are the questions George Haley asked the controller. Haley: What's the story behind Clayton's loss? Moss: Clayton lost a huge contract, so we had to lay off employees, but we were stuck with the fixed expenses. Haley: Why is the Facility expense so high at Clayton? Moss: I'll try and explain. We hired an inexperienced contractor at Clayton and he went bankrupt before the job was completed. We had to hire another contractor so the job was over budget. Haley: We need to shut down the facility Moss: I would advise against that. Here is why. If we shut it down we would still need to rent more space at the other two facilities that would cost about $600,000 to shift the work at those locations. We might save $90,000 in administrative salaries, but the building has no resale value because we are located in a residential area. Haley: I don't care I cannot show a money-losing processing center on my next performance report. From the information & conversation above please answer the following questions: 1. Determine the relevant costs 2. Are there any sunk costs? 3. Why might it be in George's self-interest to shut down the Clayton facility? 4. Is George's idea of shutting down the processing center ethical? 5. Based on Moss' estimates calculate the total new facility and total administrative expense if Clayton was discontinued. 6. Prepare a total performance report based on the estimates of shutting down the Clayton Facility assuming everything else remained constant Bank Services Corporation (BSC) Rocky Mountain Region Financial Performance Check Processing Centers Total Billings Great Falls Clayton Sales $50,000,000 $20.000.000 $ 18.000.000 $12.000.000 Operating expenses: Direct labor 32.000.000 12,500,000 1,000,000 8.500,000 Variable overhead 850.000 350.000 310,000 190,000 Equipment depreciation 3.900.000 1.300.000 1.400.000 1.200,000 Facility expense 2.800.000 900,000 800,000 1.100.000 Local administrative expenset 450.000 140,000 160,000 150.000 Regional administrative expenset 1.500.000 600.000 540,000 360.000 Corporate administrative expense 4,750,000 1.900.000 1.710,000 1.140,000 Total operating expense 46.250.000 17.690.000 15.920.000 12.640.000 Net operating income (loss) $ 3.750,000 $ 2.310.000 $ 2.080,000 $ (640,000) George Haley had just been appointed vice president of the division of the Bank Services Corporation of his region (Rocky Mountain). The company provides check processing services for small banks. This includes sending checks for deposit or payment to Bank Services Corporation. They are responsible for recording the data in their database which is then sent electronically to the Federal Reserve check-clearing center. The Rocky Mountain Region has 3 processing center: Billings; Great Falls; & Clayton. He is new to his position so he asked the controller (Sam Moss), to provide him with the most current regional performance report. Bank Services Corporation (BSC) Rocky Mountain Region Financial Performance Check Processing Centers Total Billings Great Falls Clayton Sales $50,000,000 $20,000,000 S 18,000,000 $12,000,000 Operating expenses Direct labor 32,000,000 12.500.000 1.000.000 8.500.000 Variable overhead 850.000 350,000 310,000 190.000 Equipment depreciation 3.900.000 1.300.000 1.400,000 1.200,000 Facility expense " 2.800,000 900.000 500.000 1.100.000 Local adeninistrative expense 450,000 140.000 160.000 150,000 Regional administrative expense! 1.500.000 600,000 540,000 360,000 Corporate administrative expense 4,750,000 1.900,000 1.710.000 1.140.000 Total operating expense 46.250.000 17.690.000 15,920.000 12.640,000 Net operating income (low) $ 3.750,000 $2,310.000 $ 2.080.000 $ (640,000) After viewing the report here are the questions George Haley asked the controller. Haley: What's the story behind Clayton's loss? Moss: Clayton lost a huge contract, so we had to lay off employees, but we were stuck with the After viewing the report here are the questions George Haley asked the controller. Haley: What's the story behind Clayton's loss? Moss: Clayton lost a huge contract, so we had to lay off employees, but we were stuck with the fixed expenses. Haley: Why is the Facility expense so high at Clayton? Moss: I'll try and explain. We hired an inexperienced contractor at Clayton and he went bankrupt before the job was completed. We had to hire another contractor so the job was over budget. Haley: We need to shut down the facility Moss: I would advise against that. Here is why. If we shut it down we would still need to rent more space at the other two facilities that would cost about $600,000 to shift the work at those locations. We might save $90,000 in administrative salaries, but the building has no resale value because we are located in a residential area. Haley: I don't care I cannot show a money-losing processing center on my next performance report. From the information & conversation above please answer the following questions: 1. Determine the relevant costs 2. Are there any sunk costs? 3. Why might it be in George's self-interest to shut down the Clayton facility? 4. Is George's idea of shutting down the processing center ethical? 5. Based on Moss' estimates calculate the total new facility and total administrative expense if Clayton was discontinued. 6. Prepare a total performance report based on the estimates of shutting down the Clayton Facility assuming everything else remained constant Bank Services Corporation (BSC) Rocky Mountain Region Financial Performance Check Processing Centers Total Billings Great Falls Clayton Sales $50,000,000 $20.000.000 $ 18.000.000 $12.000.000 Operating expenses: Direct labor 32.000.000 12,500,000 1,000,000 8.500,000 Variable overhead 850.000 350.000 310,000 190,000 Equipment depreciation 3.900.000 1.300.000 1.400.000 1.200,000 Facility expense 2.800.000 900,000 800,000 1.100.000 Local administrative expenset 450.000 140,000 160,000 150.000 Regional administrative expenset 1.500.000 600.000 540,000 360.000 Corporate administrative expense 4,750,000 1.900.000 1.710,000 1.140,000 Total operating expense 46.250.000 17.690.000 15.920.000 12.640.000 Net operating income (loss) $ 3.750,000 $ 2.310.000 $ 2.080,000 $ (640,000)