Thomas felt that the 85:15 split was still reasonable for the durable equipment use, and, in any case, the relatively small size of this resource expense category probably did not wan-ant additional study and data collection.

Required (2) Use the information on the distribution of nursing and machine operator resources to calculate revised product-line income

statements and profit and loss for individ-ual treatments. (3) Analyze the newly produced information and assess its implications for managers at Western Dialysis Clinic. What deci-sions might managers of the clinic make with this new information that might dif-fer from those made using information from the RCC method only? (4) What improvements, if any, would you make in developing an ABC model for Western Dialysis Clinic? •

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