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French Quarter medical clinic exists of two segments, primary care and urgent care. Below the forecasted contribution format income statement for the upcoming period. Sales
French Quarter medical clinic exists of two segments, primary care and urgent care. Below the forecasted contribution format income statement for the upcoming period. Sales $ Less: Total Variable Costs $ Contribution Margin $ Less: Total Fixed Costs $ Net Income $ Total Primary Care Urgent Care 8,000,000 $ 2,000,000 $ 6,000,000 1,000,000 $ 300,000 $ 700,000 7,000,000 $ 1,700,000 $ 5,300,000 6,000,000 $ 2,000,000 $ 4,000,000 1,000,000 $ (300,000 $ 1,300,000 Top management is considering closing the primary care department. The company estimates that fixed costs would decrease by $650,000 if the primary care department was eliminated and the company estimates that urgent care sales will decrease by 20%. What would the clinic's total profit if the primary care segment was eliminated
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