Question: Squeaky Clean, a commercial laundry service, has two clients, Super 6 Motel and Seaside Inn. The following is information about Squeakys revenues and costs (in

Squeaky Clean, a commercial laundry service, has two clients, Super 6 Motel and Seaside Inn. The following is information about Squeaky€™s revenues and costs (in thousands) by customer for the previous year:

The analysis apparently shows that Super 6 Motel is not profitable for Squeaky. Use differential analysis to decide whether Squeaky should discontinue the Super 6 Motelaccount.

Super 6 Motel Se aside Inn Total Revenues (fees charged) Operating Costs $230 $350 S580 Cost of Services (variable) Salaries, Rent, and General Administration (fixed) Total Operating Costs $212 $305 $517 20 $232 s (2) 35 S340 S 10 S572 Operating Profits

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