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Jamison Health Care is trying to decide if it should eliminate its orthopedic care division

Accounting

Jamison Health Care is trying to decide if it should eliminate its orthopedic care division. Last year, the orthopedic division had a total contribution margin of $100,000 and allocated overhead costs of $200,000, of which $90,000 could be eliminated if the division were dropped.

On the information given, should Jamison keep the division?

And what other considerations could override a strictly financial analysis to make the decision?

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