For several years, GTW Corporation has provided its employees and their families with free memberships to the Fitness Club, a local health facility. The facility has recently undergone a significant expansion including an indoor pool, climbing wall, and racquetball courts, and has notified its members of a large rate increase effective next month. GTW's board of directors has rejected management's request to pay the new rate increase. Management must now inform employees that they must now pay a portion on their membership fees. Specifically, each employee will be required to pay $15 per month and an additional $5 for each family member. Required:
As the director of human resources for GTW, write a memo announcing the rate increase. Your memo should request that employees complete a form authorizing an automatic withdrawal from their paychecks.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?