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Cost Accounting

The financial results of ABC Home Health Agency for the current year are summarized below for each of its four divisions {see attachment}. Unavoidable headquarters' costs of $1,240,000 included in the total costs have been distributed to the divisions on the basis of revenue. The remaining portion of the total $6,126,000 of costs have been incurred at the divisional level and can be avoided if a division is closed.

Which division(s) of the ABC Home Health Agency, if any, should be shut down due to failure to cover divisional costs? Please show your work.

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$2.19