-Keep because operating income would decrease by $3,300,000

-Keep because operating income would decrease by $2,130,000

-Eliminate because operating income would decrease by $3,000,000

-Eliminate because operating income would increase by $4,700,000

Grey-Sloan Memorial Hospital is considering eliminating the Emergency Department. Financial data for the past vear is summarized below. If the ER department is eliminated, all of the direct fixed expenses would be eliminated as well. If the ER departmer is eliminated the revenue for the other departments in the hospital would drop 30% since some patients start at ER visits and are admitted to the hospital and treated by other departments. Should Grey-Sloan eliminate or keep the ER department? If Grey-Sloan eliminates the ER department, operating income would by $