1. How much overhead do you think will be eliminated if they eliminate route 7? Provide a number and explain why you think that is the amount?

2. should they eliminate route 7? Explain your decision.

REVENUE Route # Route #1 Route #2 Route #3 Route #4 Route #5 Route #e Route #7 $1,117.285 $833.450 $1,223,577 $558,235 $890.605 $491,897 $889,480 $6,002,529 $1.048,797 $830.014 $1.153,819 $523,553 $808,126 $473,232 $875.692 $1.278,508 SO $1,100,879 SO $819,590 $548,132 $869.813 $1,273,941 SO $901,845 $0 $608,818 $539.726 $840.010 Total Revenue $5,713,233 $4,416,922 $4,164,340 VARIABLE DIRECT COSTS Route # Route #1 Route #2 Route #3 Route #4 Route #5 Route #8 Route #7 Total Variable Direct Costs $173,051 $170.589 $195.612 $104.711 $122.443 $78,872 $168.453 $167.593 $195,832 $210,962 $107,596 $130.971 $79,338 $161.250 $213,085 SO $195,643 $0 $99.898 $91,589 $171,569 $205,474 SO $154.203 SO $98.196 $84.332 $180,000 $1,013,732 $1,053,342 $771,782 $722.206 OVERHEAD Account # 1000 2000 3000 4000 5000 8000 7000 $755,242 $134.865 $485,512 $755,242 $269,729 $53.946 $242.756 $787,084 $138.900 $510.102 $783,004 $281.473 $56.287 $252.165 $576,695 $117.983 $373.751 $761,080 $264.022 $53.585 $184.761 $538,631 $111.485 S349,082 $717,969 $242,362 $47.592 $172,566 Total Overhead Costs $2,697,292 $2.809,015 $2,331,876 $2,179,686 Operating Profit $2,291,506 $1,850.877 $1,313,284 $1,262,448