Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation BSC The
company provides check processing services for small banks. The banks send checks presented for deposit or payment to BSC which
records the data on each check in a computerized database. BSC then sends the data electronically to the nearest Federal Reserve Bank
checkclearing center, where the appropriate transfers of funds are made between banks. The Rocky Mountain Region has three check
processing centers, which are located in Billings, Montana; Great Falls, Montana; and Clayton, Idaho. Prior to her promotion to vice
president, Ms Romeros had been the manager of a check processing center in New Jersey.
After assuming her new position, Ms Romeros requested a complete financial report for the justended fiscal year from the region's
controller, John Littlebear. Ms Romeros specified the financial report should follow the standardized format required by corporate
headquarters for all regional performance reports. That report follows:
Upon seeing this report, Ms Romeros summoned John Littlebear for an explanation.
Required:
From the standpoint of the company as a whole, what is the financial advantage disadvantage of closing the Clayton processing center
and redistributing its work to other processing centers in the region? Explain.
Why might it be in Haley Romeros's selfinterest to shut down the Clayton facility? Do you think Haley Romeros is conducting herself in
an ethical fashion? Explain.
What influence should the depreciation on the facilities at