Time Left:1064 Fatimata Ndiaye: Attempt 1 Previous Page Next Page Page 27 of 30 Question 27 (5 points) Grey Sloan Memorial Hospital is considering eliminating the Emergency Department Financial data for the past year is summarized below ER Department All Other Departments total Revenue $15,400,000 $88,000,000 Variable expenses 12,800,000 64,500,000 Direct fixed expenses 4,000,000 18,000,000 Allocated common fixed expenses 2,000,000 2,000,000 Scenario 1: If the ER department is eliminated, all of the direct fixed expenses would be eliminated as well. If the ER department is eliminated the revenue for the other departments in the hospital would drop 15% 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? Circle one Eliminate or Keep If Grey-Sloan eliminates the ER department, operating income would by $ 1. Should Grey-Sloan eliminate or keep the ER Department? Enter your answer as Eliminate or keep in the answer box provided VOID APOIO 14,UVU, , Direct foxed expenses Allocated common fixed expenses 4,000,000 2,000,000 18,000,000 2,000,000 Scenario 1: If the ER department is eliminated, all of the direct fixed expenses would be eliminated as well. If the E department is eliminated the revenue for the other departments in the hospital would drop 15% since some patient start at ER visits and are admitted to the hospital and treated by other departments. Should Grey-Sloan eliminate or keep the ER department? Circle one Eliminate or Keep If Grey-Sloan eliminates the ER department, operating income would by $ 1. Should Grey-Sloan eliminate or keep the ER Department? Enter your answer as Eliminate or keep in the answer box provided If Grey-Sloan eliminates the ER Department 2. would operating income increase or decrease? Enter your answer as Increase or Decrease in answer box provided 3. Enter the dollar amount of the increase or decrease in answer box provided AJ hp