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QUESTION 5 Ugh, we are losing our shirts on this daycarel Almost $40,0001 Maybe we should just give up on it complained Mr. Kongngv, His

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QUESTION 5 "Ugh, we are losing our shirts on this daycarel Almost $40,0001 Maybe we should just give up on it" complained Mr. Kongngv, His company had offered reduced-cost daycare to employees as a perk to entice younger workers. Here is the data for operating the daycare for the past year. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120, 00 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $7,800 A. Show calculations that support Mr. Kononexs belief that the daycare center lost almost $40,000. B. Should the center be closed? Show calculations to support your answer. C. What problem might the company experience if the center is closed

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