Millbridge Ambulance Service has been consider-ing consolidating their three locations into just two locations. The location they
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Salaries of Staff .............$ 80,000
Rent .................20,000
Repairs and Maintenance ...........10,000
General and Administrative ..........20,000
Supplies .................25,000
Total ..................$155,000
The general and administrative expenses of $ 20,000 are an allocation of costs from the central office. The costs of the central office are not affected by the existence of the specific locations. If the location is closed, the staff would be transferred to the other two locations, and the lease will be canceled, so there will be no rent or repairs and maintenance. While they won’t purchase supplies for this location, the supply cost of the other two locations will rise by $ 20,000. What should Millbridge do?
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Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
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